Gyeonggi-do Activates Contingency Plan for Novel Coronavirus... TF and Special Fund Support Included

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province has taken proactive measures such as special fund support and the establishment of a damage reporting center in response to concerns over domestic and international economic downturns and weakened consumer sentiment due to the spread of the 'novel coronavirus' infection.

First, Gyeonggi Province will operate the 'Novel Coronavirus Response Economic Task Force (TF),' an economic policy control tower involving the province, cities and counties, provincial public institutions, and expert advisory groups. The TF is divided into four subcommittees: jobs, small business owners, corporate support, and export support, and meetings are held weekly across 31 cities and counties within the province.

In addition, 70 billion KRW in special funds will be urgently injected to support small and medium-sized enterprises (SMEs) and small business owners affected by the infectious disease spread. The support funds are 20 billion KRW for SMEs and 50 billion KRW for small business owners. SMEs can borrow up to 500 million KRW per company, and small business owners up to 100 million KRW to stabilize management. The province will operate these funds until the infectious disease crisis alert is lifted or the funds are exhausted. Principal repayment is deferred until the second installment of the split repayment.

The province is also promoting a temporary expansion of the discount rate and monthly purchase limit for local currency to revitalize the depressed neighborhood commercial districts due to the spread of the novel infectious disease. To secure related resources, the province plans to request the government to provide the national budget scheduled for the second half of this year earlier.

Furthermore, a total of 670 million KRW will be invested to urgently supply 20,000 masks and 10,000 hand sanitizers to traditional markets and shopping districts where visitors have decreased due to infectious disease concerns. In particular, the province will cooperate with 31 cities and counties and local merchant associations to prepare short- and long-term measures such as monitoring local economic trends, strengthening hygiene, and enhancing merchant capabilities.

The province will also implement public job projects targeting workers in affected industries, small business owners, and vulnerable employment groups, focusing on areas where confirmed cases have occurred. To this end, the province will utilize 602 job counselors at regional job centers to support employment counseling and placement, and once the infectious disease spread subsides, will prioritize holding job fairs focusing on industries severely affected such as culture and tourism.

To minimize damage related to exports to China, the province will also operate the 'Integrated Export Difficulty Support Center.' The center will provide tailored solutions for each company's damage situation, including export insurance, priority funding support projects, and market development support.

Additionally, through 11 Gyeonggi Business Centers (GBC) located in eight overseas countries including the United States, China, and India, the province will monitor market conditions in each country and provide support policies for diversifying export regions.

To comprehensively manage the management difficulties and damage status of SMEs and small business owners in the province, Gyeonggi Province Economic Science Promotion Agency and Gyeonggi Province Market and Commercial Promotion Agency will each establish a 'Damage Reporting Center.' For reported damage cases, various projects such as credit loans will be linked and supported, and if institutional improvements are needed, support measures will be proposed to the central government.

Moreover, the province plans to expedite budget execution by targeting a local fiscal execution rate of 65.3% in the first half of the year, activating emergency bidding, advance payment execution, rapid support for investment reviews, and usage before the supplementary budget is established.

In addition, the province will actively implement measures such as ▲local tax reductions or extensions of deadlines for acquisition and registration taxes, and deferrals of collection and delinquency disposition targeting infectious disease-affected areas and industries ▲focused crackdowns on hoarding, manufacturing of substandard products, and panic buying of masks and other hygiene products, with criminal charges for violations ▲domestic demand revival campaigns and consumption promotion publicity in cooperation with cities, counties, merchants, and related organizations ▲strict response to fake news that causes anxiety and weakens consumer sentiment.

Kim Gyu-sik, Director of Economic Planning for the province, emphasized, "If the situation prolongs, we are concerned that the local economy will be directly hit by decreases in tourists, increased anxiety, consumption contraction, and disruptions in exports and imports with China. We will do our best to alleviate the burden on the local economy and resolve corporate difficulties through close cooperation with the government, cities, counties, and related organizations."

This content was produced with the assistance of AI translation services.