If You Own a 2 Billion Won Apartment, You Cannot Receive the 'Emergency Disaster Relief Fund'

Government-wide TF Announces Detailed Criteria for Beneficiary Selection
Excluding Households with Property Tax Base Over 900 Million KRW or Financial Income Exceeding 20 Million KRW Annually
Self-Employed with Income Reduction in Feb-Mar to Recalculate Insurance Premiums Using Supporting Documents
Supplementary Budget Reviewed and Approved at Cabinet Meeting for Prompt Execution

Hong Nam-ki, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance (center), held a joint online briefing with related ministries at the government Sejong Government Complex on the morning of the 16th and announced the detailed criteria for selecting recipients prepared through discussions by the "Emergency Disaster Relief Fund Pan-Government Task Force."

[Asia Economy Reporter Jo In-kyung] The government has decided not to provide emergency disaster relief funds to households with a combined property tax base of 900 million KRW (officially assessed value of 1.5 billion KRW) or financial income exceeding 20 million KRW annually.

Self-employed individuals whose sharply decreased income since the COVID-19 outbreak has not yet been reflected in their current health insurance premiums can receive support if they meet the selection criteria after a provisional calculation of health insurance premiums based on documents proving income reduction.

On the morning of the 16th, the government held a joint briefing with related ministries at the Government Sejong Complex and announced detailed eligibility criteria for recipients, prepared through discussions by the government-wide TF on emergency disaster relief funds.

First, according to the criteria announced on the 3rd, support funds will be provided up to 1 million KRW (for households of four or more) to households whose combined health insurance premiums imposed in March of this year fall within the bottom 70%. However, households with high-value assets will be excluded from eligibility.

The property amount will be based on property tax base data, set at 900 million KRW, which is the deduction standard for one household with one house under the comprehensive real estate tax that has been socially discussed. The official assessed value is about 1.5 billion KRW, and the market price is approximately 2 to 2.2 billion KRW. The financial income criterion is set at 20 million KRW, which is the threshold distinguishing comprehensive taxation and separate taxation on interest and dividend income. This corresponds to income generated from deposits of about 1.25 billion KRW (assuming an annual interest rate of 1.6%).

To assist those whose income reduction is not reflected in current health insurance premiums, the government will include them as eligible recipients if they meet the criteria after a provisional calculation of premiums based on related supporting documents.

For self-employed individuals, submitting bankbook copies showing sales deposits from card companies in February and March, or sales confirmed through sales management systems (POS), is acceptable. Freelancers or special-type workers such as private tutors can submit service contracts, appointment documents, or certificates confirming non-provision of labor. Unpaid leave workers, unemployed persons, or employees with reduced salaries can be reported by employers to the National Health Insurance Service upon occurrence of retirement, leave, or salary reduction. If employers do not report, employees can submit retirement or leave certificates and pay slips as supporting documents to enable provisional premium calculation.

Additionally, if household members have different addresses, dependent parents (direct ascendants) are considered separate households. Dual-income households living in different cities are also considered separate households, but if the combined insurance premiums of the couple are advantageous, they will be recognized as the same household. Dependents such as spouses and children, who realistically share living expenses, are considered the same household.

Recipients of medical benefits, veterans’ medical beneficiaries, and homeless persons who are not covered by health insurance will be included in the household assessment considering their difficult living conditions. Additional criteria have been established to include victims within households requiring protection due to domestic violence or child abuse as separate households eligible for support.

Furthermore, if a person diagnosed with COVID-19 or who has been in contact with a confirmed case violates self-quarantine rules, not only the individual but the entire household will be excluded from receiving emergency disaster relief funds.

The government is preparing specific measures to enable the payment of emergency disaster relief funds as soon as the supplementary budget approved at the temporary Cabinet meeting on the 16th is deliberated and passed by the National Assembly.

In particular, to ensure prompt payment, the government is preparing online and offline application procedures and considering diversifying payment methods such as local gift certificates, electronic money, and credit/debit card charging. Local governments will also prepare one-point local supplementary budgets to distribute support funds as soon as the government’s supplementary budget is confirmed by the National Assembly.

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said, "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," adding, "I earnestly request the National Assembly to start deliberations as soon as possible for the prompt approval of the supplementary budget."

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