This note examines the measures taken in Korea to contain the economic damage caused by the Covid-19 pandemic, focusing on the support provided to small and medium-sized enterprises (SMEs).
We look at five broad aspects of support for SMEs: reduction of operational costs; financial support packages; tax incentives; employment support programmes; and streamlined administrative procedures.
The note concludes with potential lessons for other countries, including the need to focus on liquidity in the short run, the importance of complementing tax incentives with boosts to consumer demand, and the disproportionate benefits of minor relaxations of administrative procedures for SMEs.
