Hospitals were at a breaking point with only three critical care beds available as of Wednesday in greater Seoul, an area with a population of almost 26 million people, officials said.
"Considering the weight and impact of Level 3 distancing, we first need to level-headedly look back at whether all of us are properly implementing the current level."
He said that measures to boost exports and investments should be further bolstered at a time when domestic demand and consumption are shrinking due to a worsening COVID-19 situation at home.
Its cautious approach comes as the country of almost 52 million people battles surging COVID-19 infections that health authorities say threaten to overwhelm the medical system.
The visit may be the last for Biegun in his current role, after Trump lost his bid for reelection to Democratic challenger Biden, who will take office in January.
A total of 333.1 trillion won ($307.4 billion), or 72.4%, will be allocated to be spent in the first half, up from 71.4% in the comparable period this year.
The Korea Disease Control and Prevention Agency (KDCA) reported 330 new daily coronavirus cases as of midnight on Saturday, a drop from 386 reported the day before, a level not seen since August.
The three key Asian allies - Japanese Prime Minister Yoshihide Suga, South Korean President Moon Jae-in and Australian Prime Minister Scott Morrison - join other global leaders in recognizing the Democratic challenger’s Nov. 3 victory over incumbent Donald Trump, who has so far refused to concede.
The two sides discussed topics such as accelerating free-trade agreement negotiations, expanding cultural exchanges as well as the election of the World Trade Organization (WTO) Director General.
Similarly the Korean shipping industry was plunged into turmoil by the collapse of Hanjin Shipping, once one of the world's top 10 container lines, which was declared bankrupt in 2017.
South Korea will limit the entry of foreigners from countries including Pakistan and Bangladesh, through a temporary restriction on flights and visa issuances.
Shipments contracted 23.7% year-on-year in May, trade ministry data showed on Monday, slower than a 25.1% drop in April but worse than a 22.1% plunge tipped in a Reuters survey.