1) Korea was one of the first countries hit by COVID-19 but was able to flatten the curve through swift government action and public cooperation. 2) The central government announced economic stimulus packages and recovery plans for local governments. It invested KRW 160 trillion under the New Green Deal and Digital New Deal programs by 2025. 3) Intergovernmental coordination involved centralized guidance from the central government and decentralized implementation by provincial and local governments. This cooperative approach helped flatten the curve.

1. Flattening the curve on COVID-19 in Korea:
Subnational and intergovernmental responses
3-4 December 2020
16th Annual meeting of the OECD network on fiscal
relations across levels of government
Hyun-A Kim
Korea Institute of Public Finance

2. I Subnational fiscal effect of the COVID-
19 and intergovernmental response

3. Ⅰ. Outbreak and pandemic shock
1. From outbreak to the Korean New Deal
Korea was one of the first countries to be hit by COVID-19. We witnessed explosions in the
number of cases in late February, latter part of August and early September, but were able to
flatten the curve.
Guided by our past experiences with infectious diseases such as MERS and SARS, Korea
government has firmly adhered to the principles of openness, transparency and civic
engagement from the very beginning of the outbreak.
On July 14, 2020, Korea government announced a comprehensive economic stimulus
package called the K-New Deal to tackle the domestic crisis.
3

4. Ⅰ. Outbreak and pandemic shock
2. Fiscal response of central government
The First stimulus package, the 2020 Supplementary Budget for Daegu city and North
Gyeongsang Province and K New Deal include recovery plan for local governments.
The K-New Deal is to serve as the key strategic document in guiding the country during
the post-COVID-19 era: Digital New Deal and Green New Deal. By 2025, we plan to
invest a total of KRW 160 trillion.
The focus of the K-New Deal is to provide new impetus for growth by expanding new
economic opportunities in digital and green industries while strengthening social safety nets.
4

5. Ⅰ. Outbreak and pandemic shock
3. The fiscal coordination between MOIS and local government
On July 7th 2020, MOIS designed 3R (Relief, Recovery, Rejump) principles to face with
COVID-19.
Emergency Plan  Fast track for efficient policy delivery
1) temporary release the limit of issuing local bond
2) boosting for regional development: flexible SOC feasibility study, financial support
for local SMEs, subsidy for local employment
3) omnidirectional assistance about tax and financial assistance for local business
market such as local tax deferral and exemption, gap filling of interest payment
- And, 119 out of 226 local governments issued ‘local allowance’ and ‘local bond’.
5

6. Ⅱ Intergovernmental coordination and
subnational responses: the containment
and healthcare measures

7. Ⅱ. Intergovernmental coordination and subnational responses
1. Cooperative governance
Centralized guidance VS Decentralized implementation
Central government : The guidance outlines the strategies and actions by Central Disease
Control Headquarters, Central Disaster Management Headquarters
The actions will be implemented by subnational government.
Provincial governments manage Base Hospitals, Corona center for Living and Treatment
for effective prevention and control of COVID-19 within their facilities.
This cooperative governance system has been well operated until now. Central and
subnational assignment contributes flattening the curve on COVID-19 until October. The
third wave from November are testing K-quarantine system.
7

8. Ⅱ. Intergovernmental coordination and subnational responses
8
2. The emergency coordination for the containment and healthcare measures
taken by SNG

9. Ⅱ. Intergovernmental coordination and subnational responses
9
3. Subnational responses to COVID-19 in Korea

10. Ⅲ. The coordination between government and private sector
In terms of governance, the government-wide efforts played a key role in stabilizing the
mask supply.
All relevant ministries were involved with extraordinary determination to stabilize the
mask supply, and what was decided in meetings were implemented right away.
Production and distribution companies also cooperated with the government to put in all
possible efforts in producing and distributing the masks day and night and throughout
weekends(the Ministry of Food and Drug).
10
Example. The efficient control for stabilizing the supply for mask

11. Ⅳ Discussion and Challenges

12. Ⅳ. Discussion and challenges
1. How south Korea flattened the curve of the COVID-19
(NYT) K-quarantine has been evaluated as a leading country : swift action, widespread
testing, contact tracing, and critical support from citizens.
FDA has repeatedly raised South Korea as a model, “South Korea is showing Covid-19 can
be beat with smart, aggressive public health”.
Korea’s strengths in COVID-19 responses :
1) Korea’s previous experience with infectious disease outbreaks
2) Public health infrastructure, 3) Use of ICT technology, 4) Integration of administrative
capacity, 5) Sticking to the principles.
4T+P : Testing, Tracing, Treatment, Transparency + Participation
12

13. Ⅳ. Discussion and challenges
2. “Good coordination minimizes the risk of crisis management failures”
Whole-of-government approach has affected on flattening the curve
1) (Medical capacity) Governance reform based on the previous experience
2) (Health admin.) Infectious disease risk alert system
3) (Coordination) The assignment among central, subnational, medical institute and private
sector
 (Example) Despite fear of the spread, Korea become the only country that held a general
election during the height of the COVID-19 pandemic.
13

14. Ⅳ. Discussion and challenges
3. “Is the Korean model transferable? “
For all the attention to Korea’ experience, its methods and containment tools are not
prohibitively complex or expensive. Korea was successful in slowing down the COVID-9
transmission without strict border control or movement restrictions.
Experts cite three major hurdles to following Korea’s lead, none related cost or technology.
Political will, public will and social trust : Polls show majority approval for the
government’s effort, with confidence high, panic low and scant hoarding.
This public trust has resulted in a very high level of civic awareness and voluntary
cooperation that strengthens our collective effort.
14

15. Ⅳ. Discussion and challenges
4. Going forward
COVID-19 continues to spread around the world. We may have been unprepared at its
arrival, but we do have the power to change its course.
Korea’s efforts to initiate and engage in more vigorous international cooperation will
continue.
In sharing our experience and learning from others, we hope to identify best practices and
emerge from the crisis as a more alert, more interconnected and better prepared world for
the next global public health challenge.
“Call for global cooperation”, “International standardization”, “Preparing for post COVID-19”
15

16. Thank you!