South Korea's economy reels from MERS.

(Baonghean.vn) - According to the latest announcement from the South Korean government, as of June 17th, the MERS outbreak has not only claimed the lives of 20 people and infected 162 others, but has also severely impacted the country's economy.

South Koreans have been avoiding crowded areas since the MERS outbreak. (AP Photo)

Seoul authorities have stated that the MERS outbreak is negatively impacting the economy, particularly severely affecting South Korea's tourism industry. The Korea Tourism Organization (KTO) estimates that approximately 108,100 tourists from countries such as China, Taiwan, and Japan have canceled their trips to the country following the MERS outbreak. This number could increase further, especially after the WHO announced the conclusions of its emergency meeting on the MERS situation, which advises against traveling to South Korea.

Besides reducing the number of foreign tourists, the MERS outbreak also impacted consumer spending in South Korea. Since the first MERS patient was detected, people in the country have limited their travel to crowded places. In the first week of June, consumption at large stores decreased by 16.5%, and at supermarkets by 3.4% compared to the same period in 2014. Revenue from movie theaters also decreased by 54.9%, and museums by as much as 81.5%.

To combat these negative impacts on the tourism industry, the South Korean government has decided to provide free insurance for all foreign tourists if they contract MERS while in South Korea. In parallel, South Korea is also maintaining a 24/7 hotline to provide MERS information in English to anyone who needs it.

Economically, the Bank of Korea (BOK) decided to cut interest rates to a record low of 1.5% on June 11th. Finance Minister Choi Kyung Hwan also pledged 400 billion won, equivalent to $347 billion, to sectors affected by the MERS outbreak. Furthermore, the South Korean Vice Prime Minister stated that other measures to revive the economy would be considered “after reviewing the situation at the end of June.”

Chu Thanh– according to Le Monde, June 17