Enter 2020.12.29 11:30 | Revision 2020.12.29 11:49
“Payment to 90% of applicants for support before the New Year holidays”
Hong Nam-ki, Deputy Prime Minister of Economy and Ministry of Strategy and Finance, said on the 29th, “We have prepared a customized damage support plan worth 9.3 trillion won to support small businesses and the underprivileged, and the beneficiaries will be 5.8 million.” This exceeds the 4th supplementary budget (7,814.7 billion won) passed in September this year. The main cash support project is to start paying from January 11 of next year and allow 90% of the payment to be received before the Lunar New Year holiday.
Deputy Prime Minister Hong said, “For small businesses affected by the novel coronavirus infection (Corona 19), a supporting fund of 4.1 trillion won will be provided for small business owners.” “We will provide cash directly to 2.8 million people.”
One million won in cash is paid to all small business owners eligible for support. However, additional cash support of 2 million won and 1 million won, respectively, is provided to alleviate the burden of fixed costs such as rent for businesses that are suspended or restricted in accordance with the quarantine guidelines. In other words, 1 million won, 2 million won, and 3 million won each are provided to those eligible for general, restricted, and prohibited industries.
Deputy Prime Minister Hong said, “We will use administrative information such as the National Tax Service to select eligible persons so that the support funds can be paid as quickly as possible, and specially affected industries and existing recipients of new desired funds (2.5 million) will be provided with just an application without separate screening. I will.”
Deputy Prime Minister Hong said, “We will provide low-interest loan financing to small business owners in prohibited and restricted industries.” The policy is to provide KRW 1 trillion to 100,000 small business owners in the collective prohibited sector at an annual interest rate of 1.9%, and 3 trillion KRW at an interest rate in the range of 2 to 4% through credit guarantees to 300,000 small business entities in the collectively prohibited sector. By investing 38.5 billion won in national treasury, the current 0.9% guarantee fee will be exempted in the first year, and will be reduced to 0.6% in the second and fifth years.
In addition, Deputy Prime Minister Hong said, “We will expand incentives for good landlords. We will extend the 50% tax credit for rent cuts until June next year, and raise the deduction rate to 70% for landlords less than 100 million won in total income.” Said. For small business owners, the payment of social insurance premiums such as electricity and gas bills, employment and industrial accident insurance premiums, and national pension insurance premiums will be suspended for three months, or the payment exception will be expanded.
An income stabilization fund of 500 billion won will be provided to the underprivileged, whose income has decreased due to the prolonged COVID-19, such as special type workers (special advisors), freelancers, and visiting/care service workers. It provides 378.2 billion won in emergency employment security support to 700,000 special high school and freelancers. Deputy Prime Minister Hong said, “500,000 won will be immediately provided to 650,000 people who have already received benefits through the 4th supplementary administration, and 1 million won will be given to 50,000 new beneficiaries through expedited screening.”
Deputy Prime Minister Hong said, “We will provide 500,000 won each for living support to 90,000 people in visiting and care services who were excluded from the existing emergency support program.” The plan is to utilize 46 billion won of financial labor and management donations. It is planning to provide a total of 40 billion won in living stabilization fund by 500,000 won to 80,000 corporate taxi drivers whose income has decreased due to Corona 19.
In order to maximize the effect of the 3rd disaster subsidy, the government decided to start payment on the 11th of next month. The goal is to complete the payment of 90% of the target people before the Lunar New Year holidays. To this end, for major cash support projects such as support fund for small business owners and emergency employment stabilization support fund, it was decided to use administrative information to select the targets and shorten the requirements screening as much as possible, or to replace it with post screening.
Deputy Prime Minister Hong also said, “We will provide 800 billion won for emergency quarantine activities to prevent the re-proliferation of Corona 19 by the first quarter of next year.” To speed up the detection, quarantine and treatment of confirmed cases, it plans to invest 166.1 billion won to support diagnostic testing expenses and expand screening clinics.
It provides 32.3 billion won for quarantine treatment for those who have entered overseas, asymptomatic or mildly infected. In addition, it plans to invest 111.1 billion won to provide additional diagnostic tests for foreign immigrants before quarantine release, operation of temporary living facilities and life treatment centers, and support for living expenses and paid vacation expenses to prevent the influx of the virus from the UK into Korea.
Deputy Prime Minister Hong said, “In consideration of the urgency of public welfare, we will apply as soon as possible. The government will mobilize all available resources to take the lead in overcoming the crisis, and to achieve economic recovery and economic rebound.”