Deputy Prime Minister Hong Nam-ki: "Pursuing a 7.6 trillion won supplementary budget for emergency disaster relief payments... Fully funded by expenditure adjustments"

2020 2nd Supplementary Budget Proposal Briefing

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kim Hyunjung] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, announced that he has prepared and submitted to the National Assembly a second supplementary budget bill worth 7.6 trillion won through full expenditure adjustments to provide emergency disaster relief funds in response to the COVID-19 pandemic.

On the morning of the 16th, Deputy Prime Minister Hong held a briefing at the Government Complex Sejong regarding the preparation of the 2020 second supplementary budget bill, stating, "Our livelihoods and economy are facing unprecedented difficulties with uncertainties far greater than during the IMF foreign exchange crisis." The second supplementary budget bill submitted to the National Assembly on this day is based on the emergency disaster relief fund payment plan decided and announced at the emergency economic meeting presided over by the President on the 30th of last month. The total cost is 9.7 trillion won, which will be shared between the central government and local governments at a ratio of 8:2 (7:3 for Seoul).

Regarding the support targets, Deputy Prime Minister Hong explained, "Considering urgency, fairness, and limited fiscal capacity comprehensively, the target was set to 14.78 million households in the bottom 70% income bracket," and added, "I would like to take this opportunity to earnestly ask for generous understanding from those citizens who could not be included in the support targets due to various circumstances."

He further explained, "Whether one qualifies as a support target will be judged based on health insurance premiums as of the end of March this year, and even if one falls within the bottom 70% income bracket, high-asset individuals meeting certain criteria will be excluded from the target."

Regarding the support amount, he emphasized, "Payments will be made up to a maximum of 1 million won, differentiated by the number of household members," and added, "Income group consumption coupons and special child care coupons, which were previously provided as emergency support, will be separately supported if the conditions are met. Considering the overall framework of these COVID-19 measures, a four-person household receiving basic livelihood security benefits can receive up to an additional 2.2 million won."

The supplementary budget funding will be covered entirely by adjusting the existing budget for the national share. Deputy Prime Minister Hong explained, "In the current situation where it is difficult to predict the extent and duration of the economic impact of the COVID-19 crisis, we must prepare for even greater waves and difficulties," and added, "We have prepared 7.4 trillion won from expenditure adjustment funds and 1.2 trillion won from early repayment of funds and additional deposit funds, considering three factors: ▲ not undermining the original purpose of expenditure projects ▲ reflecting recent changes in economic variables and budget execution status ▲ government leading by example and reflecting efforts to reduce expenses."

He also hinted at preparing additional measures in the employment sector. Deputy Prime Minister Hong stated, "We are currently preparing additional measures among related ministries to prepare for the employment shock that will soon come in full force," and emphasized, "We will continuously review additional countermeasures to protect our livelihood foundation, minimize bankruptcies and unemployment of companies facing crisis, and ultimately support the resilience and recovery capacity of our economy."

Furthermore, he requested prompt deliberation by the National Assembly, saying, "For the benefits of the emergency disaster relief funds to reach the people as soon as possible, the active cooperation of the National Assembly and local governments is most important."

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