The Korea Development Institute, a national research institute, and KDI recently diagnosed the overall slowing of the Korean economy due to the spread of Corona19.

KDI said in the March issue of the KDI Economic Trends, which was published today (8th), "In February, when the impact of Corona19 was in full swing, exports were sluggish mainly in China, and domestic demand is declining due to deteriorating economic sentiment." Said.

KDI felt that the economy was slowing down until January, but from February, the economy was shrinking rapidly due to the Corona 19 shock.

The coincidence index, which shows the current economic situation in January, was 100.5, 0.3 points higher than the previous month, and the index of the leading index, which shows the future economic conditions, rose 0.1 points to 100.3.

However, in February, the Bank of Korea's seasonally adjusted business competition due diligence index (BSI) fell sharply from 78 to 67 and all industries BSI fell from 75 to 65.

Since the beginning of February, the utilization rate of all five domestic carmakers has declined due to the supply and demand disruption of Chinese parts.

The consumer sentiment index for February also dropped sharply from 104.2 last month to 96.9.

KDI estimates that consumer activity is shrinking rapidly with the spread of Corona19.

Investor sentiment has also deteriorated significantly with the spread of Corona19.

The Korea Economic Research Institute's February investment BSI slowed significantly from 95.5 to 89.5 last month, manufacturing to 96.5 to 87.7, and non-manufacturing to 91.8 to 91.8.

Exports also reflected the negative impact of Corona19.

Exports increased 4.5% in February due to extended working days, but the average daily exports shifted from a 5.9% increase in the previous month to a 12.2% decrease.

Exports to China, in particular, declined to -6.6% even with extended working days, and the negative impact of Corona 19 is gradually visible, with a significant decrease in car exports (-16.6%).

KDI raised the possibility that the labor market, which had been maintaining good growth, will also deteriorate to Corona19.

If the spread of infectious diseases prolonged, there was concern that the increase in the number of employed, especially in the service industry and daily labor, may decrease.

The financial market also said that stock price, won value and interest rate all fell and uncertainty index rose as economic downside pressure increased due to the influence of Corona19.

KDI also pointed to a significant increase in downward pressure on the global economy, such as the downward revision of global economic growth forecasts to Corona19.

In February, international oil prices rebounded in mid-month but turned downward as oil demand forecasts were lowered following the spread of Corona19.

Investor sentiment in the international financial market has also contracted sharply.

Kim Seong-tae, head of KDI's Economic Outlook Division, said, “The specific economic recession is expected to be reflected in the February industrial activity trend of the Korea National Statistical Office.”