SOUTH KOREA’S ECONOMIC REVITALIZATION STRATEGY POST COVID-19 PANDEMIC
SOUTH KOREA’S ECONOMIC REVITALIZATION STRATEGY POST COVID-19 PANDEMIC

Summary/Abstract: The COVID-19 pandemic has caused seriousproblems in South Korea that led to an economicrecession, stunted national growth, a huge gap betweenthe real estate market and the asset market, and jobinstability in almost all sectors. Like most countriesaround the world, South Korea has aggressivelyimplemented economic policies to overcome thedebilitating effects of the pandemic, actively pursuingpolicy countermeasures that focused on what it called theKorean New Deal. To measure the effects of the KoreanNew Deal on the revitalization of the nation, this researchpaper used a dynamic regression model to analyze itsimpact on the economy. Our research used panel data onSouth Korea’s resulting economic growth rate and thesupplementary budget the government provided to attainit. Our analysis showed that the supplementary budgetcreated by the South Korean government did have aneffect on the quarterly economic growth rate compared tothat of the previous quarter. However, compared to theprevious year’s economic growth rate, the government’ssupplementary budget investment was unable to augmentthe yearly growth rate. It is our hope that these findingsand the analysis of these outcomes will contribute to theformulation and implementation of a more efficient set ofeconomic policies by the South Korean government forovercoming the adverse effects of the COVID-19pandemic on the nation’s economic life and well-being.

• Details
• Contents