South Korea’s economic revitalization strategy post COVID-19 pandemic

Abstract

The COVID-19 pandemic has caused serious problems in South Korea that led to an economic recession, stunted national growth, a huge gap between the real estate market and the asset market, and job instability in almost all sectors. Like most countries around the world, South Korea has aggressively implemented economic policies to overcome the debilitating effects of the pandemic, actively pursuing policy countermeasures that focused on what it called the Korean New Deal. To measure the effects of the Korean New Deal on the revitalization of the nation, this research paper used a dynamic regression model to analyze its impact on the economy. Our research used panel data on South Korea’s resulting economic growth rate and the supplementary budget the government provided to attain it. Our analysis showed that the supplementary budget created by the South Korean government did have an effect on the quarterly economic growth rate compared to that of the previous quarter. However, compared to the previous year’s economic growth rate, the government’s supplementary budget investment was unable to augment the yearly growth rate. It is our hope that these findings and the analysis of these outcomes will contribute to the formulation and implementation of a more efficient set of economic policies by the South Korean government for overcoming the adverse effects of the COVID-19 pandemic on the nation’s economic life and well-being.