Deputy Prime Minister Hong Nam-ki and Minister of Strategy and Finance said, “We will pay 1147 billion won worth of work and children incentives before the holidays.” The government plans to expand the tax credit for donations to revitalize donations, and sell Onnuri gift certificates that can be used in traditional markets by double the discount rate.
On the 20th, Deputy Prime Minister Hong announced the’Seoul People’s Livelihood Stabilization Measure’ at the 27th Emergency Economy Central Countermeasure Headquarters meeting. He said, “We have prepared various support measures to protect the warmth of the holiday in the midst of the new coronavirus infection (Corona 19) crisis.”
◆Onnuri gift certificates doubled the discount rate and sold 1 trillion won
Deputy Prime Minister Hong said, “We will pay 114.7 billion won in labor and eldest daughter before the Lunar New Year holiday, and lower the rate of living expenses for workers who are overdue wages from 1.5% to 1.0% a year.” The labor and eldest daughter incentives paid this time are those who missed the application period last May and received additional applications from September to November.
Deputy Prime Minister Hong said, “We will carry out a donation participation campaign for the Lunar New Year and promote additional temporary donation tax credit support to support this.” Currently, 15% of the statutory contribution is under 10 million won, and 30% of the excess is deducted. This means that the tax credit rate will be temporarily increased this year.
Deputy Prime Minister Hong said, “Even during the Lunar New Year holidays, 620 screening clinics and 74 hospitals dedicated to infectious diseases will be operated at all times.”
The measures to revitalize the local economy were also included in the measures. Deputy Prime Minister Hong explained, “We will increase the discount rate of Onnuri gift certificates from 5% before and after the New Year to 10%,” and “plan to sell a total of 1 trillion won.” “The local love gift certificate will also be sold over 4.5 trillion won in the first quarter and will provide incentives such as increasing the monthly purchase limit for each local government.”
In view of the recent surge in agricultural and livestock products prices, measures were also taken to stabilize prices. Deputy Prime Minister Hong emphasized, “We will expand the supply of 16 key sacred products such as apples and pears 1.3 to 1.8 times more than usual,” and emphasized, “We will take measures to allow duty-free import of up to 50,000 tons of eggs.” He added, “We will expand shipments of frozen stocks for chickens and ducks, and also expand supply of Korean beef and pork.”
To support the stability of ordinary people’s lives, an additional 30,000 won briquette coupon is provided to low-income families. Heating equipment will be supplied to 653 residential facilities of the vulnerable nationwide. In order to prevent temporary funding difficulties from leading to business deterioration, it will lend 384 trillion won to small businesses. The loan and maturity extension will also be implemented at a scale of 54 trillion won.
◆”Supply of 500 trillion won policy finance this year”
At the meeting, this year’s policy financing liquidity supply and management measures were also discussed. Deputy Prime Minister Hong said, “We will provide policy financing of 494 trillion won, which is 16 trillion won more than last year,” and “We plan to focus on three major areas, including corona damage, the Korean version of the New Deal, and industrial competitiveness reinforcement. It will supply 302 trillion won only to small and medium-sized enterprises that are vulnerable to corona damage. In the field of strengthening industrial competitiveness, 101 trillion won was allocated. 57.3 trillion won will be provided only to the’BIG3′ field such as system semiconductors, biohealth, and future cars.
Deputy Prime Minister Hong said, “The gap between the real and financial sectors, and the weakness of the foreign exchange sector of non-banking sectors, etc., can emerge as unexpected risks.” I will also put an emphasis on “.
For risk management, foreign currency liquidity management measures were also prepared, focusing on non-banking sectors. Deputy Prime Minister Hong said, “We will introduce a new indicator of foreign exchange soundness monitoring for non-banking sectors and include foreign currency liquidity supply from banking sectors to securities and insurance companies.”
Reporter Seo Min-joon [email protected]