Prime Minister Jeong Sye-gyun: "Must Hurry to Expand Medical Resources and Strengthen Quarantine System"

2020 Year Supplementary Budget National Assembly Policy Speech

Prime Minister Jeong Sye-gyun is delivering a policy speech on the supplementary budget bill at the National Assembly plenary session on the 5th. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Lim Cheol-young] "To effectively respond to the rapid increase and nationwide spread of confirmed cases of the novel coronavirus infection (COVID-19), it is urgent to expedite the additional expansion of medical resources and strengthen the quarantine system."

Prime Minister Chung Sye-kyun emphasized this during his policy speech to the National Assembly on the submission of the supplementary budget and changes to the fund operation plan on the 5th. Prime Minister Chung explained, "Even after the COVID-19 situation is under control, it will take time for our economy to regain vitality," adding, "So far, the livelihoods of small business owners and SMEs may be threatened, and the difficulties of vulnerable groups will be even greater." He stressed the urgent need for proactive efforts to stabilize people’s livelihoods and employment.

He also reiterated the need for active fiscal policy as the global economy is greatly shaken by the international spread of COVID-19. Recently, the Organisation for Economic Co-operation and Development (OECD) significantly downgraded the global economic growth rate to 2.4%, down 0.5 percentage points, and China’s economic growth rate to 4.9%, down 0.8 percentage points, even assuming the COVID-19 situation eases after the first quarter.

Prime Minister Chung said, "The OECD also lowered South Korea’s growth rate, which is highly dependent on external factors, by 0.3 percentage points to 2.0%, recommending active fiscal policies to respond to downside risks in the economy," adding, "It is a very urgent time for bold and proactive fiscal roles."

The government has prepared a supplementary budget worth 11.7 trillion won. The supplementary budget consists of 8.5 trillion won in government expenditures and 3.2 trillion won to cover expected revenue shortfalls.

☞ Below is the full text of the speech.

First, I extend my deepest condolences to all citizens who are experiencing great difficulties due to COVID-19. I express my gratitude and respect to everyone who is offering help and sharing the pain.

Thank you to the medical staff and quarantine officials who are dedicating themselves to overcoming COVID-19, to the ruling and opposition lawmakers who are cooperating across party lines with the government’s quarantine measures, and to officials at all levels of local governments.

Honorable citizens, Speaker Moon Hee-sang and members of the National Assembly!

Today, the government has submitted the first supplementary budget for 2020 to the National Assembly to overcome COVID-19.

I would like to explain to the citizens and lawmakers the reasons for preparing the supplementary budget and its main contents, and ask for your understanding and cooperation.

As COVID-19 rapidly spreads, it threatens the lives and safety of the people. Confirmed cases nationwide have exceeded 5,000, and deaths have increased to 34. Especially in Daegu and Gyeongbuk, where 90% of confirmed cases are concentrated, the situation is severe, and extraordinary responses are required for the nationwide spread.

The real economy is also severely contracting. Citizens’ outings and consumption have sharply decreased, worsening the difficulties of small business owners and self-employed individuals. The downturn in service sectors such as tourism, culture, and leisure is expanding. Production disruptions have occurred due to the suspension of parts supply in manufacturing, and exports have sharply declined.

In the field of people’s livelihoods and the economy, the difficulties being voiced are greater than during past SARS or MERS outbreaks.

Since the outbreak of COVID-19, the government has established a defense line against overseas inflow of infectious diseases by introducing special entry procedures, and has mobilized all national capabilities for diagnosis, treatment, and quarantine to prevent community transmission. We have strived to block more thoroughly and inspect more meticulously.

However, as confirmed cases surged mainly in the Daegu and Gyeongbuk regions, on the 23rd of last month, the COVID-19 crisis alert was raised to the "serious" level, and the Central Disaster and Safety Countermeasures Headquarters, headed by the Prime Minister, was activated to respond with full government efforts.

I ask for your broad understanding for my absence from the National Assembly’s government questioning due to unavoidable circumstances, and I thank the lawmakers of both ruling and opposition parties for allowing the Prime Minister to focus on the field.

As the head of the Central Disaster and Safety Countermeasures Headquarters, I have been stationed in Daegu, directly inspecting the field to resolve obstacles such as shortages of hospital beds and medical personnel and disruptions in mask supply, while making every effort to coordinate cooperation among central and local governments, medical staff, and related agencies.

Nevertheless, I humbly acknowledge that there are still many shortcomings in alleviating public anxiety and dissatisfaction. As the highest responsible person of the Central Disaster and Safety Countermeasures Headquarters in charge of quarantine, I sincerely apologize to the people.

Going forward, the government will expand the Central Disaster and Safety Countermeasures Headquarters system into a full government emergency response system to overcome COVID-19 and the resulting socio-economic difficulties early, concentrating all capabilities so that the people can live their daily lives.

To prevent inconvenience caused by masks, the government decided at today’s Cabinet meeting the "Emergency Supply Adjustment Measures for Masks and Hand Sanitizers," which will completely ban exports from midnight on March 6 and supply 80% of the shipment volume through public sales channels, doing its utmost to stabilize mask supply.

To improve fairness and efficiency in mask distribution, a mask sales history system will be established centered on about 24,000 pharmacies nationwide, and acts of profiteering at the expense of public health will be strictly punished to the fullest extent of the law.

However, there are limits to supply policies alone under restricted facilities and resources. There are also constraints to prioritizing mask supply to medical staff fighting COVID-19, vulnerable groups, and Daegu and Gyeongbuk. The understanding and voluntary cooperation of the public for efficient mask use, such as reuse or use of cloth masks, are urgently needed.

The government is prioritizing support for all medical resources and finances, including beds, personnel, supplies, and equipment, centered on Daegu, Cheongdo, and Gyeongsan, designated as special infectious disease management areas. However, due to the rapid increase in confirmed cases, there have been difficulties securing hospital beds, and regrettably, some patients died while waiting for admission. I express my deepest condolences to the deceased and their families.

To resolve these issues, the government has changed the COVID-19 response treatment system, shifting from hospital-centered treatment to separating confirmed patients by severity into hospitals and residential treatment facilities, thereby efficiently utilizing limited medical resources.

We will accelerate securing beds for severe patients and maximize the use of public and private facilities to expand residential treatment centers for mild patients. So far, 2,361 available beds and 2,907 residential treatment center rooms have been prepared to accommodate confirmed patients in Daegu. We plan to secure about 6,000 residential treatment center rooms in the future.

The government is making every effort to minimize the economic shock caused by COVID-19 along with thorough quarantine support prioritizing public safety.

We are sequentially preparing and implementing damage recovery support measures worth 4 trillion won in sectors greatly affected by COVID-19, such as SMEs, small business owners, tourism, exports, aviation, and shipping. Additionally, a comprehensive plan worth 16 trillion won to stabilize people’s livelihoods and boost economic vitality, including consumption and investment promotion, has been prepared and is being implemented.

However, the situation is progressing far more seriously than expected. To effectively respond to the rapid increase and nationwide spread of confirmed cases, it is urgent to expedite the additional expansion of medical resources and strengthen the quarantine system.

It will take time for the COVID-19 situation to calm down and for our economy to regain vitality. During this period, the livelihoods of small business owners and SMEs may be threatened, and the difficulties of vulnerable groups will be even greater. Proactive efforts to stabilize people’s livelihoods and employment are urgent.

The international spread of COVID-19 is greatly shaking the global economy. Recently, the OECD significantly downgraded the global economic growth rate to 2.4%, down 0.5 percentage points, and China’s economic growth rate to 4.9%, down 0.8 percentage points, even assuming the situation eases after the first quarter. It also lowered South Korea’s growth rate, which is highly dependent on external factors, by 0.3 percentage points to 2.0%, recommending active fiscal policies to respond to downside risks.

To quickly end COVID-19 and revive the economy, extraordinary measures are needed. It is a very urgent time for bold and proactive fiscal roles.

I deeply appreciate the National Assembly leaders of all parties for passing the COVID-19 three laws supporting strengthened infectious disease response measures and for agreeing on the supplementary budget.

Reflecting the intentions of the people and lawmakers, the government has prepared a supplementary budget totaling 11.7 trillion won, consisting of 8.5 trillion won in government expenditures and 3.2 trillion won to cover expected revenue shortfalls.

Honorable citizens and members of the National Assembly!

Now, I will explain the main contents of the supplementary budget.

This supplementary budget focuses on strengthening national response capabilities against infectious diseases, minimizing damage to SMEs and small business owners caused by COVID-19, stabilizing people’s livelihoods, and supporting regional economic recovery. In particular, we will concentrate budget and resources on Daegu and Gyeongbuk, which are experiencing severe difficulties.

First, we will support 2.3 trillion won to advance the quarantine system and reinforce support systems.

We will expand negative pressure rooms, ambulances, and infectious disease testing and analysis equipment, and add two specialized infectious disease hospitals to strengthen response capabilities to block the spread of new infectious diseases.

We will compensate medical institutions for losses caused by COVID-19, and provide living support and paid leave expenses to patients under hospitalization or quarantine, sufficiently supporting medical institutions’ loss compensation and the livelihood stabilization of patients and quarantined individuals in accordance with government quarantine measures.

Second, we will invest 2.4 trillion won to support SMEs and small business owners.

We will expand emergency management stabilization fund loans by an additional 1.2 trillion won for SMEs and small business owners facing management difficulties. We will also provide an additional 2.3 trillion won in special guarantees through contributions to the Korea Credit Guarantee Fund.

We will support wage subsidies for small businesses to stabilize employment. We will provide incentives such as fire safety facility installation support to traditional markets where many landlords have lowered rents to encourage rent reductions.

We will support the reopening and recovery of businesses temporarily closed due to visits by confirmed patients. We will issue additional Onnuri gift certificates to promote consumption in traditional markets.

Third, we will invest 3 trillion won to support people’s livelihoods and employment stability.

We will temporarily provide basic livelihood security recipients with regional love gift certificates worth about 200,000 won per month for four months to expand consumption capacity of low-income groups. Child allowance recipients will receive regional love gift certificates worth about 100,000 won per month for four months to ease childcare burdens caused by daycare or school closures.

We will minimize damage to the employment market by increasing the number of participants in the Employment Success Package by 50,000 and expanding youth additional employment incentives to promote youth employment stability.

Fourth, we will actively support the recovery of the depressed regional economy.

For Daegu and Gyeongbuk, separate budgets will be allocated for some supplementary budget projects such as emergency management fund support, and concentrated support will be provided for regional specialized industry development and SME facility investment funds.

For regions where job conditions have worsened, special employment support projects will be implemented to allow local governments to design and execute desired job projects. The issuance scale of regional love gift certificates will be significantly increased by 3 trillion won to revive local employment and consumption.

Honorable citizens, Speaker Moon Hee-sang, and members of the National Assembly,

While staying at the Daegu and Gyeongbuk quarantine sites, I have become confident that we have the strength to overcome this crisis.

The dedication of medical staff who fight COVID-19 all day long and take short naps leaning on benches in their protective suits, and the devoted efforts of volunteers including private medical volunteers who took leave to come here, were moving. I was deeply impressed by the strong sense of duty of the military and firefighters working at the forefront of the disaster.

Our people are now calmly following quarantine rules and working together to prevent the spread of infectious diseases. Many are willingly donating to help neighbors in need, sending quarantine supplies and daily necessities to residents in Daegu and Gyeongbuk, offering encouragement and warmth. Neighboring regions of Daegu and Gyeongbuk are stepping forward to support the severe shortage of hospital beds.

We are Daegu, and we are Gyeongbuk. Our people are a great nation that has overcome crises with united strength. I ask you to join your hearts and wisdom so that Daegu and Gyeongbuk can stand up again and surely win this war against infectious diseases.

There is a saying, "When you want to do something, you see a way; when you don’t want to, you see an excuse." The government will not make excuses but will establish effective measures that the people can fully empathize with and will check whether they are properly implemented on the ground.

The government will promptly execute this supplementary budget once confirmed to quickly end the COVID-19 situation and contribute to economic revitalization and stabilization of people’s livelihoods.

I earnestly ask for your understanding of the purpose of this supplementary budget and for the swift approval of the first supplementary budget for 2020.

Thank you.

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