Republic of Korea: 2022 Article IV Consultation-Press Release; Staff Report; Staff Statement; and Statement by the Executive Director for the Republic of Korea

IMF Staff Country Reports, March 28, 2022

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Canonical URL: Republic of Korea: 2022 Article IV Consultation-Press Release; Staff Report; Staff Statement; and Statement by the Executive Director for the Republic of Korea

Korea has recovered impressively from the COVID-19 pandemic.
Economic activity has surpassed pre-covid levels despite multiple COVID waves.
The recovery was supported by:
- effective containment of the pandemic, including rapid vaccination in 2021;
- proactive economic policy support, which helped minimize economic scarring, sustain income growth, and maintain financial stability;
- strong external demand, reflecting Korea’s high global integration.

The authorities’ policy responses are characterized as able and supportive of the recovery.
Major subjects addressed: COVID-19, Fiscal policy, Health, Housing, Housing prices, Inflation, International organization, Monetary policy, National accounts, Prices.
Keywords included in the report: core inflation, COVID-19, financial market reform, Global, Housing, Housing prices, Inflation, inflation expectation, semiconductor price, space indicator, staff statement, terms of trade shock.

The upcoming presidential election is identified as a window of opportunity to reinvigorate structural reforms.
Emphasis on sustaining income growth and maintaining financial stability through continued policy vigilance and reforms responsive to external demand conditions.