<Anchor>

Kwon Ae-ri reporter's friendly economy will start Tuesday. By the way, don't worry, China still has 99% of the number of confirmed or fatalities, and there are many predictions that it will literally become a global epidemic. There's a lot of talk about the new corona that's going to hurt our economy and the world economy in the future?

<Reporter>

Yes. At least in the first quarter of this year, the impact of the new corona is likely to be affected economically.

Of course we are. How fast the spread of the new corona in China will be the biggest variable for our economy in the first half of the year.

There are a number of big retail outlets that aren't opening right now. Shilla Duty Free Seoul, Lotte Duty Free Jeju, and Large Duty Free shops were closed due to confirmation of the visitor.

AK Plaza Suwon, a department store where the wife of the 15th Confirmation Officer, worked, and the big mart E-Mart Bucheon, Gunsan, Cinema CGV Sungshin Women's University and Bucheon Station were closed.

Of these, only E-Mart Gunsan branch has resumed business. Most are coordinating with the health authorities when it may be desirable to reopen the door.

If the domestic spread does not stop quickly, these large stores may continue to emerge. Coordinating when to open the door again can be disruptive.

I mentioned a few times here that the economy is most scared. That's exactly what it is now.

And even if the store doesn't go down, there's a clear trend towards shrinking consumer sentiment as a result of people wandering less, buying less, and shrinking.

Last weekend's sales at major retailers fell by around 10% from the same period last year.

<Anchor>

Consumption is also consumption, and are there places where factories are disrupting production?

<Reporter>

Yes. Right now, there are places in the country where factories suspend production or cut down on operations.

China has extended holiday closures in major cities to this week. The Chinese stock market opened yesterday after three days of devaluation, which plunged nearly 8 percent, the Shanghai Composite.

At the same time, the stock market was open and there are still many jobs that are still out of work. This is due to the fear that the virus may spread further when people go to work and gather at the company.

That's right, because some 40% of new corona infections in China are coming from outside Hubei.

As a result, there are not a lot of rest factories, so the parts that need to be brought in from China are not available.

Kia Motors has also begun to adjust production volumes. The Ssangyong Motor Pyeongtaek Factory cannot open today. And the factories of our companies in China are also coming out of places this week to stop production or reduce utilization.

The question is whether after this week, after the 9th, the Chinese government will not be able to take the suspension.

Unless the new corona spreads in China this week, it will be hard for the Chinese community to fully return to work on next week.

That's why we can't rule out the possibility of serious disruptions in the production, supply and demand of our factories in China, and parts supply. It is necessary to keep a close watch on the Chinese situation every day.

<Anchor>

Except for the domestic consumption problem, how fast the new corona is knotted in China and when it is fading is the key.

<Reporter>

Yes. The stock market, exchange rate, and financial markets will remain unstable for the time being until some uncertainty regarding the new corona is resolved.

It is important to what extent the impact on the real economy stops. It is also important that the world's factories shut down quickly in China, and how much China's consumption will survive afterwards.

For example, smartphone and global market researcher Strategic Analytics predicted that global corona production could be reduced by 2% and Chinese sales by 5% due to the new corona this year.

This situation is likely to be caused by various items. So private investors have already lowered this year's growth rate in China, and Korea's growth rate is also falling.

The Ministry of Strategy and Finance's forecast that we can grow 2.4% this year is largely a calculation based on the survival of the Chinese economy and the semiconductor industry.