High-Efficiency Appliances 10% Rebate Program, National Assembly Cuts Budget from 300 Billion to 150 Billion Won

2.85 Trillion Won Ministry of Industry Supplementary Budget Bill Passed by National Assembly

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] The Ministry of Trade, Industry and Energy has reduced the budget for the high-efficiency home appliances rebate program, which was promoted as part of the supplementary budget (supplementary budget) for responding to the novel coronavirus (COVID-19), from 300 billion KRW to 150 billion KRW.

On the 18th, the Ministry of Trade, Industry and Energy announced through a press release that the supplementary budget plan for the ministry, which went through National Assembly deliberations, was finalized at 285 billion KRW for four projects. Previously, the ministry had submitted a supplementary budget plan worth 362 billion KRW to the National Assembly.

The supplementary budget projects approved by the National Assembly include ▲500 billion KRW for support of early cash conversion of export receivables ▲73 billion KRW for temporary electricity bill support for small business owners ▲12 billion KRW for regional vitality projects ▲150 billion KRW for the high-efficiency home appliances rebate program.

First, the high-efficiency home appliances rebate program, which the ministry intended to promote with a budget of 300 billion KRW, was reduced to 150 billion KRW after National Assembly deliberations. This program reimburses 10% of the purchase price when buying high-efficiency home appliances to help restore consumer sentiment. Ten items, including TVs and air conditioners, are eligible, with a limit of 300,000 KRW per person.

A budget of 50 billion KRW was allocated for support to expand liquidity for small and medium-sized export companies facing difficulties such as export contract cancellations and delayed payments due to the impact of COVID-19, through early cash conversion of export receivables.

Additionally, the government and the National Assembly decided to provide emergency support for electricity bills to alleviate the management burden of small business owners in special disaster areas facing business difficulties. A new budget of 73 billion KRW was allocated for this purpose.

Small business owners in Daegu and the Gyeongbuk regions of Gyeongsan, Bonghwa, and Cheongdo, which were declared special disaster areas, will receive support covering 50% of their electricity bills. The bill reduction will apply from the April usage period and continue for six months until September.

The budget for the regional vitality project, aimed at enhancing regional industrial competitiveness and closely supporting local companies, was increased by 12 billion KRW to support the Daegu and Gyeongbuk areas. Together with local governments, four projects (each with 3 billion KRW) will be identified and promoted to strengthen the competitiveness of key regional industries. As a result, the regional vitality project will proceed with a total budget of 30.5 billion KRW this year.

An official from the Ministry of Trade, Industry and Energy stated, "We plan to promptly execute the supplementary budget to maximize its effects and do our best in management as well."

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