South Korea unveils $9.8 billion stimulus to fight coronavirus

While following the global fight against the deadly coronavirus (COVID-19), South Korea recently announced a stimulus package of 11.7 trillion won ($9.8 billion) on Wednesday, as per Reuters.

Key quotes

Finance Minister Hong Nam-ki said the supplementary budget, subject to parliamentary approval, will channel money to the health system, child care, and outdoor markets.

The flu-like virus, which originated in China, has killed more than 3,000 and roiled global financial markets as investors and policymakers brace for a sharp knock to world growth.

South Korea has the most cases of infections outside the mainland, weakening consumption and prompting Bank of Korea Governor Lee Ju-yeol to issue a warning last week that Asia’s fourth-largest economy could contract in the first quarter.

FX implications

Following the news, the USD/KRW pair declines to 1,183 while South Korean equity gauge KOSPI register 1.69% gains to 2,48 by the press time.