The South Korean government will use around 18 million U.S. dollars of emergency funds in a bid to contain the spread of the coronavirus.
Speaking at an emergency economy-related ministers' meeting on Tuesday, Finance Minister Hong Nam-ki said the government will use the emergency funds set aside for tackling epidemics for this year's budget in quarantine operations and treatment.
"The government will also closely monitor the effect of the new coronavirus on South Korea's economy, particularly the real economy and help minimize its negative impact."
He added the government will take cues from past cases, including SARS in 2003, the Middle East Respiratory Syndrome (MERS) in 2015 to address the possible economic impact on South Korea's tourism and services sectors.
He also vowed to stabilize financial markets should they become more volatile.
Stocks in Asia fell on Tuesday morning after Wall Street plunged overnight amid fears the coronavirus outbreak would hurt China's economic growth and the global travel industry.
On Tuesday, South Korea’s benchmark Kospi dropped more than two percent at the start of trading.
Markets in China and Hong Kong are closed for the Lunar New Year.
Brent Crude tumbled three percent to under 59 U.S. dollars a barrel.
Kim Hyesung, Arirang News.