Input 2021.03.02 11:00
4th additional 6.9 million people benefit… Only 3 out of 100 are 5 million won
500,000 won for street vendors, 2.5 million won for college students… Controversy over equity
Support + Payment at the end of March… New employment security funds from April to May
“In the prohibited or restricted industries, the targets for disaster support payments have been greatly expanded. The amount received is also higher so that’wider and thicker’ can be achieved at the same time.”
Lee Nak-yeon, the leader of the Democratic Party, said on the 28th at a party-political consultation convened on the 28th to organize the first additional budget for this year, worth 1.95 trillion won.
In fact, the government has greatly eased the support standards applied at the time of the third disaster subsidy last year in this supplementary administration. In terms of sales, it was raised from less than 400 million won to less than 1 billion won per year. The number of full-time workers was also abolished. Through this, 1.05 million businesses were added to the 4th disaster support fund, along with the 3rd (2.8 million). 6.9 million people benefited from the first supplementary supplement this year, including the 4th subsidy.
However, according to the standards suggested by the government, only 115,000 small business owners and self-employed businesses eligible for compensation of up to 5 million won, 2.9% of the 3.85 million business sites eligible for support, were found. It means that only 3 out of 100 can receive 5 million won. It is expected that even more than this, the number of business operators that receive up to 6.8 million won supported by the government. Only 2% of the operators can receive 4 million won support. Businesses who can receive subsidies in excess of 3 million won, the highest subsidy for the third disaster subsidy, are only 5% of the total support targets. Most businesses will receive a subsidy similar to the third disaster subsidy. This means that the level of satisfaction experienced by business operators may differ from the remarks by the ruling party leadership that the subsidies have increased significantly.
On the other hand, the fact that the party government made it possible for unregistered street vendors and college students without tax data to receive government subsidies while advocating the cause of reducing the government-supported blind spots is causing a controversy over equity. It is pointed out that it is questionable whether or not the amount of support has been returned to the place where it is needed due to inconsistent application standards.
◇The maximum was 5 million won… 95% less than 3 million won
In this supplementary administration, the government’s most elaborate policy is the support fund plus. The supporting fund is a policy support fund for self-employed and small business owners who are suffering from management difficulties due to Corona 19. Until now, support funds were only allowed to be paid to small business owners prohibiting and restricting gatherings and sales of less than 400 million won. However, it has been pointed out that the support range is narrow, with annual sales of 400 million won and monthly sales of 33 million won.
Hong Ik-pyo, chairman of the Democratic Party’s Policy Committee, appeared on a radio on the 1st and revealed the details of the 4th disaster support, saying, “We have raised the support fund a little bit and diversified the section.” Chairman Hong said, “For the industry that has been banned for one month in January this year, we will give 5 million won, and additional support for electricity from at least 600,000 won to a maximum of 1.5 million won will be provided.” It is to provide a total of 6.5 million won, including 5 million won in subsidy and 1.5 million won in electricity bills.
Although the ban on gatherings has been lifted, 4 million won will be paid for two types, such as academy and winter sports facilities (ski resorts), where time and number of people are limited. About 70,000 companies benefit, accounting for only 1.8% of the total. In fact, only 4.7% of the total support targets are those who can receive subsidies of 4 to 5 million won, which exceeds the maximum subsidy (3 million won) for the 3rd disaster support.
Most self-employed people, such as restaurants, cafes, lodging businesses, and PC cafes, which have been banned from business after 9 pm until the 14th of last month, are expected to receive 3 million won. The invested budget is 2,900 trillion won, and a total of 966,000 facilities (25%) receive support. The government pays 2 million won in subsidies to 264,000 business-critical businesses whose sales declined by more than 20% among general industries. Of the total payment targets, 2 million won accounted for 6.8%. In addition, it was decided to pay 1 million won to stores in general industries with annual sales of less than 1 billion won, which decreased in sales. 63% of all eligible recipients will receive 1 million won.
Electricity bill support is also controversial. The ruling party claimed that it could receive additional benefits of up to 600,000 to 1.8 million won by reducing electricity bills, but very few people can receive the maximum benefit.
The government decided to impress the electricity bill for 1151,000 industries subject to quarantine measures by 50% and 30% for the group restriction for three months. The maximum limit is 1.8 million won. The budget invested here is 220.2 billion won. The average support amount announced by the Ministry of Information and Infrastructure is 288,000 won for the group ban and 173,000 won for the group limit. There is a big difference from the amount announced by the ruling party.
An economics professor who requested anonymity said, “It is said that the ruling party can receive subsidies of 5 million won and 6.5 million won to 6.8 million won such as electricity bills, but there are very few people who actually benefit.” It is correct to explain about it.” He said, “It is a national deception to talk as if many small business owners and self-employed people can receive high-level subsidies before the election,” he said.
The government decided to provide subsidies to street vendors, corporate taxi drivers, and college students whose parents suffered damage from Corona 19, which were not previously targeted for support. It is expected that only about 2 million people will be eligible for such new support.
About 40,000 street vendors registered at the competent ward office provide 500,000 won on the condition that they have business registration. The plan is to pay 500,000 won of temporary livelihood support without separate screening to 800,000 poorly-worked households who are suffering from difficulties in living, such as unregistered street vendors and temporary daily workers. The total budget is 406.6 billion won. A special labor scholarship of 2.5 million won is provided to 10,000 college students who suffer financial difficulties due to their parents’ unemployment and closure. In addition, 800,000 freelancers and special hire workers receive 500,000 to 1 million won each, and 80,000 corporate taxi drivers receive 700,000 won of employment safety funds.
The problem is the’equity controversy’. Even unregistered street vendors who do not have a tax record are raising the question of whether it is fair to provide half of the support for self-employed people (1 million won) whose sales have been confirmed. Street vendors who are supervised by the ward office receive the same amount of support as those of unregistered street vendors.
There are voices of criticism that it is justifiable to pay disaster subsidies to college students on the basis of their parents’ unemployment or closure. Most of these are adults who can become self-reliant, and they are not even directly hit by Corona 19, such as a decrease in sales and profits.
In particular, their parents are self-employed who are unemployed or closed down and receive disaster subsidies, which can be a double support. In addition, unemployed or discontinued families with minor children may be excluded from additional support, leading to controversy over discrimination. It is the background of the saying that it was aimed at the vote of university students with voting rights ahead of the by-election in April.
The party administration is planning to submit an additional bill that has been passed through the state council meeting to the National Assembly on the 4th. The ruling party aims to deal with the supplementary bill at the plenary session of the National Assembly on the 18th. The government plans to start the payment of the supporting fund plus at the end of March. However, in the case of emergency employment security support, 700,000 (500,000 won) of existing applicants will be paid at the end of March, but 100,000 new applicants (1 million won) will be paid in April-May after application and document review.
An official of the Ministry of Information and Transportation said, “For elaborate screening of this supplement, we refer to the information on VAT declarations that were compiled on the 25th of last month. Currently, the National Tax Service is working on building a VAT database.” “We have organized the supplementary administration under the principle that many benefits will work.”