Geumcheon-gu, 1st Supplementary Budget (27 Billion KRW) for COVID-19 Response and More Allocated

158 Billion Allocated to Prevent COVID-19 Spread and Revitalize Local Economy... 5 Billion Special Management Stability Guarantee for SMEs and Small Businesses, 2 Billion SME Development Fund, 40 Million Allocated for Local Currency Issuance

[Asia Economy Reporter Jong-il Park] Geumcheon-gu (Mayor Yu Seong-hoon) has formulated the 1st supplementary budget to revive small and medium-sized enterprises (SMEs) and local businesses amid the prolonged economic downturn caused by COVID-19.

On the 14th, the district submitted a supplementary budget proposal totaling 27 billion KRW to the district council, aimed at supporting SMEs, small business owners, and self-employed individuals, recovering the stagnant local economy, preventing the spread of COVID-19, and promoting district projects.

This supplementary budget focuses on preventing the spread of community infections due to the prolonged COVID-19 pandemic and supporting SMEs, small business owners, and self-employed individuals whose livelihoods are threatened by the local economic downturn. To this end, 15.8 billion KRW of emergency funds will be injected.

To provide practical assistance to SMEs, small business owners, and self-employed individuals struggling with decreased sales due to the economic slump caused by COVID-19, a total of 7 billion KRW has been allocated, including 5 billion KRW for the "Geumcheon-type Business Stability Special Guarantee Support" and 2 billion KRW for the "SME Development Fund."

The "Geumcheon-type Business Stability Special Guarantee Support" project, separate from government or Seoul city programs, supports loans totaling 75 billion KRW for small business owners through a special agreement with the Seoul Credit Guarantee Foundation. Including those with low credit ratings, emergency funds of 5 million KRW per business can be quickly loaned without collateral or interest, expected to provide substantial help to approximately 15,000 businesses.

Additionally, to support SMEs, 2 billion KRW has been allocated as transfer funds to the SME Development Fund, supplementing the existing 4.8 billion KRW. This allows for additional loans up to 100 million KRW per local SME, expected to assist about 60 companies.

Furthermore, the district will invest 1.7 billion KRW in policies to stimulate local consumption and address employment issues to boost the local economy.

As an incentive to revitalize the local economy and consumer sentiment weakened by COVID-19, 40 million KRW has been allocated as the district’s share for issuing "Geumcheon G-Valley Love Gift Certificates" worth 5 billion KRW.

Moreover, 750 million KRW has been allocated for the Geumcheon-type Neighborhood Public Job Project to create 100 jobs for residents facing difficulties in job seeking due to COVID-19.

In addition, 73 million KRW has been allocated to support jobs for university students facing economic hardships amid school delays, and 830 million KRW for projects to revitalize specialized local alleyway markets.

Also, the district will invest 5.28 billion KRW to ensure early termination of COVID-19 and establish an infectious disease response system. This includes 280 million KRW for various quarantine equipment and supplies for vulnerable groups and facilities, 2 billion KRW in disaster contingency funds, and 3 billion KRW in disaster management reserves to prepare for future infectious disease response demands.

In addition, to support vulnerable groups suffering from COVID-19, 660 million KRW has been allocated for the "Low-income Emergency Welfare Support Project," 780 million KRW for "Living Expenses Support for Hospitalized and Isolated Individuals," 150 million KRW for "Home Childcare Allowance Support," and 230 million KRW for "Online Learning Device Purchase Support."

Meanwhile, aside from COVID-19 response funds, the district has also allocated 10 billion KRW for district projects such as the construction of a family center and a youth cultural house, and 1.8 billion KRW as matching funds for public contest and subsidy projects.

The 2020 1st supplementary budget proposal submitted by the district will be reviewed and approved at the Geumcheon-gu Council’s extraordinary session scheduled for the 22nd.

Mayor Yu Seong-hoon stated, "This supplementary budget focuses on supporting SMEs, small business owners, self-employed individuals, and local businesses whose livelihoods are threatened by COVID-19, as well as revitalizing local consumption. Furthermore, we will strive to ensure that no blind spots occur in government, Seoul city, and district-level support policies for COVID-19 damages, and will promote residents’ livelihood stability through expenditure restructuring if necessary."

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