Case Study Impact Of COVID-19 On The Global Economy

Case Study Impact Of Covid 19 On Global Economyseveral Sectors In The

Choose a foreign country and research the economic policies that the country has put into place to assist with the recovery. Specific examples should be provided to support your paper. Your comments should also be supported by your research. This is a midterm activity. Reflect on what you have learned in activities in Modules 1-4 and demonstrate an understanding of the concepts and theories. You are expected to go beyond your textbook to support your comments in this case study. There should be a minimum of three references that are from scholarly journals. The contents of the paper should consist of three pages (750 words) written in current APA format. The total of three pages does not include the cover page, references, or any exhibits.

Paper For Above instruction

The COVID-19 pandemic has profoundly disrupted the global economy, impacting a multitude of sectors with varying degrees of severity. To mitigate these adverse effects, governments across the world have implemented diverse economic policies aimed at stimulating recovery, supporting affected industries, and stabilizing their economies. This paper focuses on South Korea, a country that responded proactively with targeted policies to address the economic fallout of COVID-19, illustrating how strategic interventions can foster resilience and recovery.

Introduction

The unprecedented nature of the COVID-19 pandemic has compelled governments to adopt diverse economic measures. South Korea's response has been characterized by a combination of fiscal stimuli, monetary easing, and support for specific industries. These policies have aimed to cushion the economic blow, preserve employment, and facilitate rapid post-pandemic recovery. Analyzing South Korea's strategies offers insights into effective policy measures and their implications on economic resilience.

South Korea's Economic Policies during COVID-19

South Korea's government introduced a comprehensive stimulus package amounting to approximately 240 trillion Korean won (roughly $200 billion USD) in 2020. This package included direct cash transfers to households, support for small and medium-sized enterprises (SMEs), and investments in healthcare infrastructure (Kim & Lee, 2021). A key aspect was the focus on safeguarding employment; the government provided wage subsidies to prevent mass layoffs, particularly in the service and manufacturing sectors (Lee & Han, 2022).

Monetary policy adjustments complemented fiscal measures. The Bank of Korea reduced interest rates and introduced liquidity support programs to ensure financial stability. These actions aimed to maintain consumer confidence and facilitate credit flow to businesses seeking to recover or sustain operations during economic downturns (Choi & Shin, 2021).

Targeted Support for Hard-hit Sectors

Likewise, South Korea targeted specific sectors most affected by the pandemic, such as tourism, hospitality, and aviation. For instance, the government extended loans and grants to airlines and travel agencies to prevent collapse. Additionally, strategic investments in digital infrastructure facilitated e-commerce and remote working, aligning economic recovery with technological adaptation (Park & Kim, 2022).

Results and Impact of Policies

These comprehensive policies have yielded positive outcomes. South Korea experienced relatively rapid recovery compared to other countries, with GDP growth rebounding in late 2020 and continued expansion in 2021 (OECD, 2022). Employment levels stabilized, and consumer spending gradually increased, indicating confidence in the economic outlook (Bank of Korea, 2022). The government's emphasis on technological innovation has also enhanced long-term resilience against future shocks.

Conclusion

South Korea’s strategic combination of fiscal stimulus, monetary policy adjustments, and sector-specific support demonstrates an effective response to COVID-19’s economic impact. The country's focus on safeguarding employment and investing in digital infrastructure facilitated a swift recovery, highlighting the importance of proactive and targeted interventions. This case underscores the need for adaptable policies tailored to sector-specific needs and the value of integrating technological innovation into economic recovery strategies.

References

• Bank of Korea. (2022). Monetary policy report. https://www.bok.or.kr
• Choi, J., & Shin, H. (2021). Monetary policy responses during COVID-19: Evidence from South Korea. Asian Economic Journal, 35(4), 357-375.
• Kim, S., & Lee, H. (2021). Fiscal stimulus and economic recovery in South Korea amid COVID-19. Journal of Asian Economics, 75, 101345.
• Lee, D., & Han, S. (2022). Employment support policies during the pandemic: Lessons from South Korea. Contemporary Economics, 16(2), 113-129.
• Organisation for Economic Co-operation and Development (OECD). (2022). Economic outlook for Korea. OECD Publishing.
• Park, J., & Kim, M. (2022). Digital infrastructure and COVID-19 recovery in South Korea. Technology in Society, 67, 101803.