홍남기 기획재정부 장관 "거리두기 3단계 전환시 경제 피해 극심....깊이 있게 검토돼야"

Deputy Prime Minister and Finance Minister Hong Nam-ki said the government will consider initiating a second round of cash-equivalent relief campaign, should social distancing measures be raised to Level 3 from the current 2 amid a rapid flare-up of COVID-19 infections. The first round of relief incurred 14 billion won (11.8 million) in government funds after providing up to 1 million won to all households.

The highest level, defined by a ban on gatherings of 10 or more people and other tightened rules, will deal a severe blow to the country's economy, posing the strongest headwind to the economy, he added.

"Raising the level to 3 should follow the deepest consideration of its far-reaching consequences on every sector of society," Hong said during a press briefing Thursday.

The change in the social distancing level together with changes in the number of new infections will be the key variable for the government to determine whether to draft a fourth extra budget, he added.

"Further deliberation will be needed to decide whether or by how much the government should use fiscal policy to help those affected by the Level 3 measures."

Containment effort is the top priority, not only a prerequisite for the economy to recover faster from the pandemic, but also a reason he said he cannot oppose the Level 3 rule.

"Economic recovery and virus containment should be equally pursued, because we cannot make it with one without the other. The government will continue to seek a balance between the need to put in place strict containment measures and its impact on the economy in high-level meetings in the weeks to come," he said.

Discussion on the second round of cash-equivalent relief must be preceded by the full execution of the third budget in the amount of 35 trillion won, he stressed.

At least 8 trillion won and up to 9 trillion won of 35 trillion won has yet to be executed including 2 trillion won allocated for low-income earners who have experienced layoffs or pay cuts, a part of emergency assistance to better protect the most vulnerable, Hong said.

"It will take until the end of the year for the third budget to be fully executed. The government will closely monitor the changes in the number of infections before considering drafting another extra budget."

Korea reported 371 new infections, Friday, following 441 a day earlier. The daily figures have been ranging between 266 and 441 over the past 10 days.