Corona 19 is expected to bring about many changes across the economy and across all sectors of society.

In the wake of the Corona 19 crisis, comparable to the Great Depression, Signs of the reorganization of the international economic, financial, social, etc. situation (also it is called as Reshaping) are appearing. Recently, foreign analysts and scholars have made a series of claims that the world before and after Corona 19 will be distinguished.

The Eurasia Group defined the Corona 19 as a "Chapter Break," which divides the 2.0 era with Globalization 1.0, while McKinsey & Co. assessed the world to enter the "Next Normal" after the Corona 19. Former U.S. Secretary of State Henry Kissinger also diagnosed that the political and economic upheaval triggered by the Corona 19 incident will continue for generations.



Schism

Corona 19 is expected to expose the vulnerability of globalization, accelerating the return of production bases(A.K.A. Reshoring), cracks in Europe, and infinite competition between the U.S. and China. Although cost was prioritized 30 years ago in the deployment of supply chains, it is highly likely that the portion of the value chain in the country will gradually expand as it turns to value risk and resilience through the U.S.-China trade dispute and Corona 19. If developed countries such as the U.S. accelerate their Reshoring, it will inevitably deal a blow to the beneficiaries of the U.S.-China trade dispute, such as Vietnam.

Shift of economic and financial center of the world

There are growing calls within the United States that the Corona 19 incident is a "tipping point" that marks the beginning of the weakening of the dollar's international status and the reduction of Western influence.

The implementation of the largest-ever stimulus package by the United States could lead to a modern version of the Triffin Dilema, in which inflation and debt growth lead to a weakening of the dollar's confidence. On the other hand, it is also worth noting the possibility of the Western-oriented global economy moving to Asia in the wake of the Corona 19 crisis. This argument was supported by that while the top five countries, which were considered well-prepared for last November's Pandemics, currently account for about 40 percent of the world's Corona 19 confirmed number, Asia is expected to have fast resilience based on dynamism and agility.

Changes in behavior of consumption and investment


Even after social distinctions are over, non-face-to-face activities are expected to become routine and practices for consumption and investment will change, especially among young people. As the scope of online activities expands to telecommuting, telemedicine education, etc., the speed of digital transformation will increase, resulting in fierce competition for leadership in digital payments and trade among major countries. In addition, the global health crisis is likely to show a tendency to value price-to-consumption satisfaction in determining purchases and to be more reluctant to take financial risk-averse than previous generations due to the growing need to prepare for future shocks caused by falling incomes and job insecurity.

Externalization of social fragility


Amid the spread of Corona 19, potential structural inequality in terms of economic impact and access to medical care could increase the instability of the international community due to increased hatred of other races and religions. Low-wage service workers and vulnerable people who have difficulty working non-face-to-face are exposed to greater economic risks, which will stimulate internal conflicts within society. On the other hand, it should also be noted that the controversy over racial discrimination began in the West, targeting Asians, and has recently spread to certain racial (black) and religious (Islamic) abhorrence in China and India.