South Korea will take economy-boosting measures if necessary in order to deal with the fallout of the outbreak of Middle East Respiratory Syndrome (MERS), the top economic policymaker said Wednesday.
The MERS outbreak, which was first confirmed on May 20, has claimed nine lives and infected more than 100 people so far, sparking concerns it could dampen consumer spending, thus hampering the economy’s recovery.
“The government will take supplementary measures to boost the economy when the need arises,” Finance Minister Choi Kyung-hwan said at a meeting of economy-related ministers in Sejong City, the nation’s administrative capital.
The finance minister also said the central government has set up a 400 billion won ($357 million) support package to industries and regions hit hard by MERS.
The government will waive income tax returns and payments due for June and even push for tax breaks for travel and tourism, hospitality and performing art industries that have been hit hard by the outbreak, he said.
Choi, who doubles as acting prime minister, said the government is checking the fallout of MERS on small retailers and shops. Once the extent of damage is assessed by Friday at the latest, the government will move to provide assistance funds, he said.
The government can offer some 100 billion won to small retailers hurt by MERS, while communities can also be entitled to special assistance, he said, adding small and medium-sized hospitals and clinics suffering a drop in patients will be given special financial support.
According to finance ministry data, sales at department stores and large discount outlets fell 16.5 percent and 3.4 percent on-year, respectively, in the first week of June. Compared to the first two weeks of May, sales at department stores nosedived 25 percent, while numbers for discount stores were down 7.2 percent. Credit card purchases decreased 5.5 percent in the one week period vis-a-vis the first two weeks of May.
The MERS scare has sent the number of people using trains and planes falling noticeably this month, with tourism hit hard as foreign visitors canceled trips, the ministry said, adding that people visiting stadiums, theme parks and museums all declined.
To help with the ongoing effort to stop the spread of MERS, Choi said all people who have been quarantined will be given emergency cash support, regardless of earnings. These people will be given preferential treatment in the use of childcare facilities.
Choi stressed that the government is committed to curbing the spread of MERS by the end of the week, and that no effort will be spared in providing financial and material assistance to those that need it.
He said that close cooperation is under way with the World Health Organization to more efficiently tackle the outbreak and to provide precise and transparent information about the illness so as not to cause undue panic among the general public. (Yonhap)
