MERS Outbreak Affecting Korean Economy

Discussion in 'General Trading Discussion' started by gracer, Jun 17, 2015.

  1. gracer

    gracer Senior Investor

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    Since the outbreak of the Middle East Respiratory Syndrome (MERS) in South Korea, the country's economy has been negatively affected. Residents have been avoiding public places such as malls, shopping centers, cinemas, and amusement parks. Foreign tourists have also cancelled their flights to South Korea since the beginning of June decreasing the tourist arrivals by 25%. Here's a link to the latest news on Korea's economic state since MERS:

    http://www.businessinsider.com/mers-outbreak-hurting-korean-retail-and-tourism-2015-6
     
  2. pwarbi

    pwarbi Senior Investor

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    Any outbreak like this is obviously going to have an impact on the economy of a region. Tourism is probably going to be hit the hardest, and that in turn will have a negative impact on the rest of the region. It acts as a knock on effect, if people are scared to go to the region, then it will affect all the markets.
     
  3. JoshPosh

    JoshPosh Guest

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    It's the Ebola scare all over again. Oh don't forget the world health organization has said to stop drinking camel urine because that's one way you can get it.
     
  4. Nujabes

    Nujabes Member

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    It seems to be a bit of a crazy chain of events! MERS was just the first domino to be knocked before everything began falling out of place. I mean, places like South East Asia often strive off of tourism (especially Japan, China, and South Korea), so without tourists, that's a large income gone. And I mean, without money circulating throughout their economy via public, non-government run establishments; there's no way for this money to make its usual rounds. I can see it now. If this keeps up, and if it continues to steadily decline (or drop drastically), small businesses will go under, and their employee's will be put into compromising positions.

    Let's just hope that it doesn't go that far!
     
  5. Nujabes

    Nujabes Member

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    That's actually a really good way to describe it. I wouldn't be surprised if it ended up not doing much to anyone other than a small few.
     

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