Download This PaperThe Korean Economy: One Year After the COVID-19 Outbreak
Korea Institute for Industrial Economics and Trade Research Paper No. 21/iKIET/109
i-KIET Issues & Analysis No. 109
15 Pages Posted: 19 Jan 2023
Date Written: May 5, 2021
Abstract
The COVID-19 pandemic is estimated to have caused a decline of 3%p in Korea’s GDP growth and 7%p in private consumption growth, as well as the loss of 460,000 jobs.
Compared to previous crises, the pandemic-induced economic slowdown was the nation’s second largest, following that suffered in the wake of the 1997–98 Asian financial crisis, with severe shocks to private consumption and employment.
After bottoming out in the second quarter of 2020, however, the Korean economy has recovered, albeit at varying rates by sector, amid lingering weakness in the job market.
While manufacturing’s output and exports have returned to pre-pandemic levels, employment, private consumption, and service output in 2021’s first quarter lagged behind.
A year’s worth of time-series data has been collected since the pandemic’s outbreak. Using this data, this study assesses the coronavirus’s impact on the Korean economy and industries, the development of the ensuing effects over time, the impact’s pathways and distribution across sectors, and policy implications.
Keywords: COVID-19, economic crisis, business cycle, Korea, manufacturing, employment, services, disaster aid, disaster relief, macroeconomics, macroeconomic policy, consumer price index, consumption, poduction, productivity
JEL Classification: P17, O47, O40, L60, J11, J21, J23, H12, F01, F02, G20, E32
Suggested Citation: Suggested Citation
Duyong Kang (Contact Author)
Korea Institute for Industrial Economics and Trade ( email )
Sejong National Research Complex
370 Sicheong Dae-ro C-dong 8-12F
Sejong City 30147
Korea, Republic of (South Korea)
Seong-hwan Min
Korea Institute for Industrial Economics and Trade ( email )
Sejong National Research Complex
370 Sicheong Dae-ro C-dong 8-12F
Sejong City 30147
Korea, Republic of (South Korea)
Sung Keun Park
Korea Institute for Industrial Economics and Trade ( email )
Sejong National Research Complex
370 Sicheong Dae-ro C-dong 8-12F
Sejong City 30147
Korea, Republic of (South Korea)