Unlike in the US or Europe, Korea has not implemented drastic measures against Covid-19, such as compulsory lockdowns, and whether Covid-19 has significantly dented Korea’s economic activity remains unclear. However, the country’s manufacturing sector relies heavily on exports and these are declining, rendering any likelihood of an economic rebound in the second half of the fiscal year rather uncertain. Some believe that it may well take two or three years for the global economy to recover. The existing quantum of previous orders, together with government subsidies in the first half of 2020, helped Korean businesses to sustain themselves, but as the economy continues to face downside risks, the long-term future remains murky.
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