But the finance ministry said Asia's fourth-largest economy is expected to do well compared to other major economies, citing a report from the Organisation for Economic Cooperation and Development on South Korea.
The OECD said the country will take the smallest hit to growth of any advanced economy this year, by falling just 0.8 per cent, after it was able to limit the spread of the coronavirus without imposing severe lockdowns. The OECD had previously forecast South Korea's economy to shrink 1.2 per cent this year.It comes as the government cut its economic projections for this year in June, forecasting the economy would grow just 0.
"There are still significant risks to our forecast since it is based on a scenario the coronavirus pandemic would cool down in the second half of the year," Hong said. Hong also said the ministry is currently not considering another supplementary budget, which would be its fourth for this year.