Ministry of the Interior and Safety Goes All Out to Revive Local Economy... Early Execution of 137 Trillion Won in Local Finance in the First Half of This Year

[Asia Economy Reporter Osangdo] The government will expedite the early execution of 137 trillion won in local finances in the first half of this year to revive the regional economy, which has been contracted due to the novel coronavirus infection (COVID-19). This amount corresponds to about 60% of the 227 trillion won in local finances scheduled for this year, marking the highest amount in the first half over the past five years.

The Ministry of the Interior and Safety announced the 'COVID-19 Response Emergency Support Plan for the Regional Economy' containing these details at the Economic Ministers' Meeting held on the 19th. Amid President Moon Jae-in's order that "extraordinary measures are necessary in emergency situations," related ministries have mobilized all efforts to respond.

This measure focuses on restoring the contracted regional economy to normal levels.

First, an additional 108.2 billion won will be spent on quarantine measures to end the infectious disease early. This will be used for purchasing masks, hand sanitizers, thermal cameras, and supporting daily necessities for those in self-quarantine. The Ministry of the Interior and Safety also encourages local governments to actively use negotiated contracts for purchasing quarantine supplies and to simplify prior reviews of cost appropriateness even for purchases over 20 million won. Previously, the ministry invested 36.7 billion won nationwide in local governments to block infectious diseases.

To offset the negative impact of COVID-19 on the regional economy, rapid execution of local finances amounting to 137 trillion won will also be carried out. The Ministry of the Interior and Safety plans to encourage local governments to prepare supplementary budgets and focus on projects that help the regional economy, such as support for small business owners and SMEs, job creation, and expansion of SOC investments.

In particular, to support small business owners, the issuance scale of local love gift certificates, scheduled at 3 trillion won this year, will be expanded, and the usual discount rate of 5-6% will be raised up to 10% depending on the region. Temporary parking on roads around 548 traditional markets nationwide will be allowed for up to 2 hours, and local governments will encourage the use of external restaurants. For lodging and food service businesses struggling due to COVID-19, benefits such as preferential interest rates on new loans from Saemaeul Geumgo, deferral of local tax notices, and installment payment options will also be provided.

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