Despite the outbreak of Covid-19 in Korea, there has been no lockdown and the impact of the virus has remained rather limited to date. This suggests that the correct fiscal and monetary policy stance to be taken by the Korean government and the Bank of Korea, should not have been to stem the crisis by speedy and preemptive action as in the case of the 2008 global financial crisis, but to mitigate its economic impact by a gradual response, which would be taken in tandem with the evolution and intensity of the Covid-19 pandemic. Furthermore, given the enormous financial cost ensuing from the misallocation of resources, actions targeting vulnerable sectors and groups should be prioritized. A gradual and targeted response in place of a speedy and undiscriminating response seems to be the more appropriate method to cope with the Covid-19 crisis in Korea.