Categories: HealthNews

Coronavirus To Cause Permanent Changes In South Korea Economy, Business Environment

SEOUL, June 29  — The new coronavirus pandemic will likely have a lasting effect on various ways of life, such as where and how people shop, possibly leading to permanent changes in the global economy and trade, a South Korean central bank report suggested Monday.

Some of the changes maybe for the better for some countries, but some may be for the worse for others, Yonhap news agency quoting the central bank as saying.

“The COVID-19 pandemic may not stop at causing an economic slump globally but is highly likely to cause changes in the behavior of economic agents,” the Bank of Korea (BOK) said in its report.

For instance, households will likely become more risk-averse as they face immediate threats to their own safety and livelihoods, while businesses are expected to place increased emphasis on stability and flexibility as they face unexpected production disruptions, it noted.

“With an increased need for households and businesses to expand contact-free activities, the shift to a digitalized economy will likely be accelerated, while the move toward de-globalization may also be enhanced, along with enhanced trade protectionism,” the report said.

Such changes, however, will vary in different countries, depending on how each country deals with them.

“For instance, accelerated digitalization may have a positive impact on productivity in some countries, but in other countries, it may be highlighted for a reduction in labor input,” the BOK said.

“Uncertainties over the speed of such changes, as well as their directions, still remain high, but even if the economy breaks away from the impact of the coronavirus-caused crisis, it will be difficult to expect the behaviors of households, companies and the government to return to the pre-pandemic stage,” it added.

Sources: BERNAMA

Adib Mohd

Recent Posts

Year-End Getaways to Indonesia with Deals from RM40 – Discover Hidden Gems Beyond Bali

As the year winds down, Traveloka is helping travelers rediscover Indonesia’s locally loved destinations through… Read More

3 days ago

Le Méridien Kuala Lumpur Unveils “A Timeless Collection” of Mooncakes This Mid-Autumn

This Mid-Autumn Festival, Le Méridien Kuala Lumpur invites guests to celebrate tradition with elegance through… Read More

3 days ago

Google Unveils Pixel 10 Series, Pro Fold, Watch 4 & Buds 2a at Made by Google 2025

Google has just pulled back the curtain on its newest Pixel lineup at the annual… Read More

3 days ago

PayNet & Ant International Expand Partnership to Take DuitNow QR Global

Payments Network Malaysia (PayNet) and Ant International have signed a new Memorandum of Understanding (MoU)… Read More

3 days ago

ZTE & MMU Team Up to Build Malaysia’s Next Wave of ICT Talent

ZTE Corporation has signed a Memorandum of Understanding (MoU) with Multimedia University (MMU), paving the… Read More

3 days ago

Melbourne Beyond the City: Road Trips and Campervan Adventures

Melbourne is famous for its laneways, coffee culture, and buzzing arts scene, but here’s a… Read More

4 days ago

This website uses cookies.