Public finance responses to covid-19 in korea

Jaehyun Jung, Hwanoong Lee, Kyung Ho Song

Research output: Contribution to journalReview articlepeer-review

5 Scopus citations

Abstract

This article summarizes the current economic status of the Republic of Korea amid the coronavirus pandemic and the government's policy responses. The authors propose the areas of the government's fiscal policy that entail in-depth research to prepare a better response in the future.

Original languageEnglish
Pages (from-to)879-900
Number of pages22
JournalNational Tax Journal
Volume73
Issue number3
DOIs
StatePublished - Sep 2020
Externally publishedYes

Bibliographical note

Funding Information:
three parts: 183.7 trillion won of financial support, 83.7 trillion won of fiscal policy, and 2.6 trillion won of tax policy. The financial support consists of a financial support package (135 trillion won), government guarantee debts (40 trillion won), and other financial supports from the Second Comprehensive Package (8.7 trillion won). The tax policy is made up of 1.7-trillion-won worth of tax cuts and 0.9-trillion-won worth of reduction or deferral of Social Security contribution. Table 2 presents a list of economic policy responses to COVID-19, tabulated by dates of the press releases.

Funding Information:
To stabilize the bond, stock, and short-term money markets, the government allocated funds of 56.4 trillion won, which were composed of six parts (Table 4). A 20-trillion-won Bond Market Stabilization Fund (BMSF) was financed by a joint venture of 84 financial companies (i.e., banks, securities, and insurance) and the Korea Development Bank for the purpose of normalizing operations in the corporate borrowing market. The Korea Development Bank also directly purchased 1.9 trillion won of convertible

Publisher Copyright:
© 2020 National Tax Association. All rights reserved.

Keywords

  • COVID-19
  • Fiscal policy
  • Tax policy

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