<Anchor>

Kwon Aeri's friendly economy starts. Reporter Kwon, yesterday (26th), the so-called 'Korean quantitative easing' measures were announced, but this is something that the Bank of Korea has never done before?

<Reporter>

Yes. The economies of Korea have just told you how unprecedented quantitative easing the United States has put forth this week, and the Bank of Korea came up with a monetary policy that was the first in Korea.

Apart from the IMF period, when conditions were very different from now, it was a card that I couldn't take out during the financial crisis.

What did you choose to do, and for the next three months from next month, you decided to buy an unlimited number of bonds called repurchase bonds issued by financial companies.

The story is to provide financial institutions, banks and securities companies with unconditional money until June. "The banks are running out of money? Then we'll give." This is what the central bank, the Bank of Korea, will do.

<Anchor>

What kind of effect do you expect and how to proceed?

<Reporter>

First of all, in principle, it means that indirectly, it will provide money to self-employed people, businesses, and households who are in serious financial difficulties.

The biggest fear of corporations right now is default. It's bankrupt. When do you go bankrupt? If you can't pay your debts, you can do it.

If i have 0 sales this week. He says he couldn't pay the principal and interests this month. Then the bank, who is worried about not getting money from not only me but also other companies, will pay off, but I can't listen to it no matter how much I say.

Even now, even if it is not the crisis that came suddenly, it is a situation where even a store or a company that has been healthy can be bankrupt.

However, banks, securities firms and financial institutions can receive money whenever they need money for the next three months. This can lead to less credit crunch and money blockages that are triggered by fears that financial companies may not be able to recover their money.

The bank can tell me to pay it back next month. This is the Korean version of quantitative easing that the policy that expected it came out yesterday.

How is it different from the quantitative easing that the U.S. carried out this week? The U.S. is not going through financial companies like us, but is directly supplying funds to companies in need.

This is a completely different story. In fact, the measures taken by the Bank of Korea yesterday are really unprecedented for us.

The central bank's Federal Reserve Board, which prints key currencies and dollars, is a level of action that has been done little by little since the end of last year.

<Anchor>

So how much can yesterday's policy help businesses and households right away?

<Reporter>

Once in Korea, there were few other options left for currency measures. We already hit the lowest interest rate of 0.75%.

Because it is difficult for the interest rate control to make the money more difficult, the central bank is in fact forced to put more money together.

On Tuesday, nearly 100 trillion won of financial stability measures came out at the emergency economic meeting. At that time, it was a plan to make things such as bond market stabilization funds, which were decided to be created for companies that suffered from financial difficulties, and make them investments from financial institutions.

Then, how to raise the money, and the 'Korean quantitative easing' that came out yesterday is the answer of the central bank.

Since we're going to give you unlimited money, we're telling financial institutions to participate in the 100 trillion won financial security policy, including the bond market stabilization fund, as planned.

On the other hand, there are worries. This is because Korean won is not a dollar.

There are many Korean won on the market. However, Korea cannot feel the fear that if the value of the won falls as much as it increases, it will be impossible to keep the world's money out of our country.

However, this action was inevitable. Because, now we have to turn off the emergency fire. There are many experts who make the diagnosis that the amount of money on the market is not a problem, but that the country can withstand it now.

Rather, it is not enough at the current level. There are already voices saying that we should do more.

[Young-Moo Cho / LG Economic Research Fellow: Not only we, but major countries such as the US, Eurozone, and Japan, central banks are spending almost unlimited money, sending strong signals to endure and survive. Even if the Korean won is much solved (with 'Korean quantitative easing'), rather than the sharp decline in the value of the won, will the Korean economy survive and survive the corona crisis? In particular, it is expected that Korean companies and industries will be able to withstand the damages caused by closing or bankruptcy too much, which will be a bigger factor in the value of Korean won and the movement of foreign capital in the future.]

<Anchor>

It seems to be this way, even if you prescribe the medicine, save it, and then restore your health. I heard it well.