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Then, today (16th), we will talk in detail with the Bank of Korea's economic policy team leader, the background of the interest rate cut by the Bank of Korea and how it will work.

Q. What does the base rate for 0% of colostrum ever mean?

[Park Min-Ha / Head of Economic Policy Team: The problem is that the past crisis is different from the nature. The 1997 foreign exchange crisis, which was clearly visible to the public, or the global financial crisis in 2008, was the case when the foreign exchange and financial insolvency became a turning point and hit the real economy. So, it was possible to recover relatively quickly through surgical operations to recover financial insolvency, but this time, the scope of the crisis is global and the movement of people and goods is limited, and the global supply chain is collapsing. In addition, investment, consumption, and demand are rapidly contracting because the pandemic (global pandemic) will not end. As supply and demand collapse together, there is concern that the real thing will be hit first and then be transferred to the financial sector. Deputy Minister Kim Yong-beom also said that it should be prepared for a long-term downturn in the L-shape by stipulating that it is a complex crisis that has not experienced this.

Q. Will there be a rate cut effect?

[Park Min-ha / Head of Economic Policy Team: It should be noted that the environment at home and abroad surrounding the crisis is very different from the past. During the 2008 crisis, China's economy grew by 9%, serving as a buffer for the crisis. However, as you saw earlier, the epicenter of the pandemic (global pandemic) and the situation of the Chinese economy are not unusual. The 6% growth has already passed, and in the early 5% range, Moody's also sees it as late 4%. In addition, compared to the past 4 ~ 5%, the absolute level of the standard interest rate in each country is quite low. That is why there are many skeptics that companies and households are going to invest and consume interest rates.

It is the story of Professor ManQ Harvard University, the author of the famous economics theory, who has been talked a lot in the market today. This is what it means. So where do you spend your finances, this will be a problem, the most vigilant thing in a similar vein is the credit crisis. If self-employed people including vulnerable people, as well as key industries such as airlines and automobiles, which are experiencing temporary financial difficulties, begin to collapse one by one, there is a high possibility that it will be able to get out of control due to financial insolvency. So we need to block the credit crisis first and create demand from the government through bold financial spending. Although we are on a scale ahead of the process, we will need to gather wisdom where to prioritize financial spending.]