Review of payment of up to 5 million won or more for the 4th disaster support fund

It is known that the government and the ruling party are considering a plan to pay up to 5 million won or more for the 4th disaster support fund, taking into account the decrease in sales of small businesses.

According to the Democratic Party along with the government on the 21st, it is promisingly considering a plan to divide small business owners into 2-3 groups according to the rate of decrease in sales, and to pay the 4th disaster support at a flat rate.

For example, if you give 1 million won to a small business owner whose sales decreased by less than 10%, 1.5 million won is given to a person who has decreased by 30%, and 2 million won to a person who has decreased by 50%.

The government gave 3 million won to the prohibited business (240,000 people) and 2 million won to the restricted business (810,000 people), regardless of the decrease in sales. Although it was not subject to collective bans or restrictions, it paid 1 million won to general businesses (1,75 million people) whose sales decreased.

In the first place, a plan to provide support at a fixed rate corresponding to the extent of the decrease in’income’ was reviewed, but the direction was actually set to a fixed-rate differential payment, reflecting the reality that the support fund had to be paid promptly amid an insufficient income identification system.

Along with this, a plan to increase the base line for subsidy payments for general industries from less than 400 million won in annual sales to less than 1 billion won in annual sales is being considered.

In addition, measures are being sought to increase the number of workers, which is the baseline for subsidies for small business owners, from’less than 5 (based on service industry)’. In this case, even those who slightly exceed the category of small business owners under the Enforcement Decree of the Basic Small Business Act can receive the small business subsidy.

While it is discussed that the maximum level of subsidies for prohibited collective, restricted business, and general industries will be over 4 million to 5 million won, a conclusion is expected in the process of discussions with the party this week.

Support for the underprivileged, such as special type workers (special advisors) and freelancers, is also under review. It is reported that there is a possibility that the 3rd subsidy payment method, which paid 500,000 won to existing beneficiaries and 1 million won to new beneficiaries, may be further upgraded.

A plan is also under consideration to provide subsidies to borrowers such as tourist buses, self-employed people who have closed their business, and street vendors such as market stalls. There are many observations that they will be provided with a fixed amount of around 500,000 or 1 million won.

In the case of street vendors, their income is not recognized and they are often tax-free, so public opinion against giving subsidies to them can be a last-minute variable.

Separate support programs are being sought for the culture, art, tourism, and travel industries that have been intensively affected by Corona 19.

There are observations that the total size of the first supplement will be adjusted between the parties and around 15 trillion won. This is because the employment crisis overcoming program, additional vaccine purchase costs, and quarantine costs were added to the selected disaster subsidies that were initially discussed.

The ruling party is also calling for a plan to pay disaster support in a lump sum to low-income families, around the bottom 20% of their income. The purpose of this is to pay subsidies in a lump sum as the class is likely to be in the blind spot of various government support programs even if they suffer from unemployment or closed business due to Corona 19.

The government gave up to 1 million won (based on a family of four) by classifying households with a sharp drop in income among households with a median income of 75% or less during the second subsidy last year. However, the government is said to have excluded this plan from the current review list because it does not suit the purpose of the 4th subsidy of customized support.

Reporter Jeong Yeon-mi [email protected]

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