South Korea’s Moon Says Virus Is Contained; Aims to Revive Economy
South Korea’s Moon Says Virus Has Been Contained
(Bloomberg) -- South Korean President Moon Jae-in said his country has contained the coronavirus as he sought a budget increase to help the pandemic-hit economy recover.
Speaking in parliament on Wednesday, Moon also vowed to make South Korea carbon-neutral by 2050, putting a date on the goal in line with one proposed by his progressive ruling party. It also aligns the country with commitments made by other major economies including the European Union, China and Japan.
Moon called for strengthening the government’s fiscal role next year by increasing the budget by 8.5%. South Korea’s vigorous response in fighting the pandemic has helped boost Moon’s political standing at home and led to a stronger-than-expected rebound from its pandemic-triggered recession.
“By reinforcing the active role of fiscal policy, we can quickly overcome the crisis,” Moon said.
Moon said now is the time for a clear economic rebound, while also cautioning the country still runs the risks of a virus resurgence. He spoke a day after data showed gross domestic product increased 1.9% in the three months through September from the prior quarter. Economists had forecast 1.3% growth, following two quarters of contraction.
South Korea has seen some of the lowest death figures from Covid-19 of any advanced economy, with a total of about 460 since the start of the pandemic as of Wednesday. It is recovering from recession in a stronger position than most developed nations, aided by its exports recovery, stimulus measures and its relatively successful containment of the coronavirus.
“Based on our confidence from the coronavirus quarantine, we will pursue policies that would boost our consumption level,” Moon said, adding he will press forward with his long-standing policy priorities of job creation and trying to bring down runaway real estate prices.
Moon’s administration has been lauded globally for containing outbreaks without a lockdown, relying on rapid testing and contact-tracing.
Moon also vowed to increase defense spending, while saying he will keep pushing for the denuclearization of North Korea. Moon saw his rapprochement with Pyongyang take a hit in June when it blew up a $15 million liaison office South Korea built two years ago north of the border to serve as a de facto embassy for the countries, which have no formal diplomatic ties.
While seeking to defuse tensions with North Korea, Moon’s government outlined a new five-year military blueprint a few months ago that will allow the country to project its military might in more places beyond the peninsula through the acquisition of weapons systems such as an aircraft carrier.
“Peace is the way of coexistence for both South and North Korea,” Moon said.
©2020 Bloomberg L.P.