Family Care Expenses Expanded from Up to 5 Days and 250,000 KRW per Person to 10 Days and 500,000 KRW

The 14th Economic Ministers' Meeting on COVID-19 Response and the 4th Crisis Management Countermeasures Meeting Held
"Additional 31.6 Billion KRW Required... Full Amount to Be Supported from Contingency Fund Next Week"

[Sejong=Asia Economy Reporter Kim Hyunjung] The government announced on the 9th that it will double the emergency support for family care costs to a maximum of 10 days and 500,000 won per person, compared to the previous support. This measure comes in response to the sharp increase in demand for home care support due to the postponement of school openings.

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, chaired the 14th Economic Ministers' Meeting on COVID-19 Response and the 4th Crisis Management Meeting at the Government Seoul Office on the 9th, and announced this in his opening remarks.

First, to allow parents to confidently use family care leave actively until normal attendance at daycare and school resumes, the government will double the family care cost support from the current maximum of 5 days and 250,000 won per person to a maximum of 10 days and 500,000 won. As a result, the number of households benefiting from family care cost support is expected to increase by 30,000 households from the current 90,000 to a total of 120,000 households, and the additional required amount (31.6 billion won) will be fully covered by contingency funds next week.

Additionally, the government announced emergency support measures for industries and sectors in response to COVID-19, following last week. Traffic inducement charges borne by department stores, marts, tourism and cultural facilities, and electrical facilities will be reduced by 30% for this year's imposed amount only (approximately 120 billion won reduction effect based on 2019), and road and river occupancy fees paid by private operators will be temporarily reduced by 25% for this year.

The apron usage fees paid by airline ground handling companies to the airport corporation for storing work equipment at airports will also have their reduction rate expanded from the existing 20% to 100%.

For the sports industry sector (sports facility business, sports goods business, sports service business), which has been most affected by the social distancing campaign, an additional 30 billion won in special operating funds loans will be provided through changes to the sports fund, increasing the total from 20 billion won to 50 billion won. General loans will offer principal repayment deferral and a one-year maturity extension.

In the agriculture and fisheries sectors facing difficulties due to reduced agricultural and fishery products, the reserve fund loans for business operators will be expanded from 10 billion won to 20 billion won, and for fishery products, the rental fee for the Incheon export logistics center site will be temporarily reduced by 20% for six months to support exports.

Deputy Prime Minister Hong said, "Going forward, there is a high possibility of employment adjustments centered on temporary and daily workers with unstable employment status and self-employed and small business owners experiencing sharp sales declines," adding, "Maintaining employment by companies and workers keeping their jobs is the most important foundation for stabilizing people’s livelihoods directly linked to the national economy and citizens' livelihoods, so it is very important to prepare sufficient and meticulous preemptive measures."

He continued, "Accordingly, we will focus on four measures and directions: ▲employment retention measures for small business owners, small and medium-sized enterprises, and large companies ▲unemployment measures for workers displaced from jobs ▲emergency jobs and new job creation measures in the public and private sectors ▲livelihood stabilization measures for workers and unemployed persons facing greater difficulties, and will devise additional response plans to prepare for employment shocks."

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