Korea was among the first countries hit by COVID-19. Due to an effective strategy to contain the spread of the virus, the government limited the damage to the domestic economy and output is shrinking less than in any other OECD country. Nevertheless, private consumption is contracting, as households exercise caution and suffer from income losses. Unemployment is rising, particularly for non-regular workers. Real GDP is projected to decline by 1.2% in 2020 in the single-hit scenario and by 2.5% in the double-hit scenario. The global recession will hold back exports and investment, especially in the event of a second global wave of infections.