The government said on Monday that it is now an established fact that the novel coronavirus will impact the global economy, vowing to take additional stabilization measures for the local market if necessary.

First Vice Finance Minister Kim Yong-beom presented the assessment on Monday during a meeting with the chiefs of economy-related agencies in Seoul. 

Kim said that he cannot rule out the possibility that the COVID-19 pandemic will last for a considerable period of time and have a complex impact on the country's real economy and financial sector.

While noting the unprecedented global spread of the virus, the vice minister said that the world economy is unlikely to see a V-shaped recovery characterized by a sharp economic decline followed by a quick and sustained recovery.

He added that the global economy is feared to see even a U-shaped or L-shaped recession. 

The vice minister said that volatility in the financial market could lead to a credit crunch and worsen difficulties in the real economy, pledging to take additional market stabilization measures quickly if necessary.