The outbreak of Middle East Respiratory Syndrome is feared to have a negative impact on the South Korean economy by dampening consumer spending and corporate investment, the top economic policymaker said Monday.
  

The warning comes as the country remains gripped by the potentially deadly disease that has claimed six lives so far and forced more than 2,500 people to be kept in quarantine.
  

"The outbreak is a source of concern and could hurt consumption and business investment," Finance Minister Choi Kyung-hwan said in a speech to a gathering of heads of highly competitive medium size enterprises in Seoul.  
  

"Everything possible is being done to contain the spread of MERS with efforts being made to check its impact on the economy and come up with counter measures to limit fallout."
  

Related to the impact, the finance ministry said it is considering providing support for tourism, retail and other sectors that have been hit hard by the MERS outbreak.
  

"There is a need to examine all the developments. Support can come in the form of offering low interest loans to tourism and hospitality (companies)," it said.
  

According to industry data, the number of Chinese tourists to the southernmost resort island of Jeju was down 34 percent lower than normal from Friday through Sunday. Large discount outlet E-mart reported a 7.8 percent on-year drop in sales at some of its stores last week  
  

Market watchers expressed concern that the MERS outbreak may make a dent in economic growth this year, with some predicting gross domestic product will expand more slowly than anticipated. The finance minister said over the weekend that the low 3 percent range may be possible this year.
  

"There is a need for aggressive monetary and fiscal policy measures to counteract the MERS outbreak and contraction in exports," said Sung Tae-yoon, an economics professor at Yonsei University. "Unless firm measures are taken, the economy may grow in the 2 percent range this year."
  

Meanwhile, Choi said the government will come up with measures to prop up the economy in the second half, with emphasis placed on export promotion, job creation for young people and venture business support.
  

Detailed plans outlining such support will be announced later in the month or in July.
  

While stock and property markets have gained buoyancy along with private spending, industrial output and investment numbers have fluctuated up and down, posing downside risks, he said.
  

Choi, who doubles as deputy prime minister for economic affairs, also said the weak Japanese yen and an overall drop in global trade are other sources of concern.
  

In regards to comparative medium-size enterprises, Choi said the government will do its part to support their growth. These companies make up 10 percent of the workforce and 16 percent of South Korea's exports.
  

A comprehensive support plan for such companies will be unveiled at the meeting of economy-related ministers Wednesday. (Yonhap)