Supplementary Budget Review Exceeding 6.2 Trillion Won... Additional 4th and 5th Measures to Be Prepared If Necessary

COVID-19 Supplementary Budget... Focus on Supporting Affected Small Businesses and Revitalizing Domestic Demand

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The government announced that the size of the supplementary budget (추경) will not be less than the 6.2 trillion won during the Middle East Respiratory Syndrome (MERS) outbreak.

According to government departments on the 1st, this supplementary budget will focus on ▲advancing the quarantine system such as infectious disease diagnosis and treatment ▲supporting recovery for affected small and medium-sized enterprises and small business owners ▲measures to revitalize domestic demand.

Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki held a briefing at the Government Complex Seoul on the 28th of last month and mentioned the size of the COVID-19 supplementary budget for the first time, saying, "We will submit a supplementary budget bill exceeding 6.2 trillion won to the National Assembly next week."

Deputy Prime Minister Hong added, "This will not be the end of the new coronavirus infectious disease (COVID-19) measures; if this measure is insufficient, we can also release the 4th and 5th measures."

Regarding this statement, a Ministry of Strategy and Finance official explained, "It seems to have been an expression of the government's determination regarding the COVID-19 situation," adding, "If exports and domestic demand continue to be hit, the government will eventually have to prepare additional support measures."

The government previously announced the 'Comprehensive Measures for Minimizing the Impact of COVID-19 and Early Overcoming of Livelihood and Economy,' based on the judgment that the livelihood conditions are worsening as confirmed COVID-19 cases surge.

First, to stimulate consumption, the government will double the income deduction rates for credit and check card usage from March to June. The deduction rate for credit cards will increase from 15% to 30%, for check cards and cash receipts from 30% to 60%, and for traditional markets and public transportation from 40% to 80%. When purchasing a passenger car, the individual consumption tax will be temporarily reduced by 70% up to a limit of 1 million won.

The government will also introduce the '5 Major Consumption Coupon' system to promote consumption in various fields such as jobs, vacations, culture, tourism, and childbirth.

For the job coupon, if elderly job participants receive 30% of their total compensation in local love gift certificates, etc., an additional 20% of the total compensation will be paid as an incentive. The vacation coupon will increase the number of beneficiaries of the 'Korean-style Check Vacation' support, where the government and companies each add 100,000 won for a total of 200,000 won in vacation expenses for domestic tourism, from 80,000 to 120,000 people, and will offer discounts on tourism products. Additionally, 1.71 million low-income people will be supplied with integrated cultural use vouchers worth about 90,000 won, and 60,000 people will receive 100,000 won in national tourism gift certificates through a lottery when they visit local festivals and tourist attractions and certify it on SNS.

The target number for the eco-friendly agricultural product purchase electronic voucher (40,000 won per month) provided to pregnant women will also be increased to 80,000.

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