Seoul City Allocates Total of 2.83 Trillion Won in Second Supplementary Budget for COVID-19 Emergency Support

Support for Major Affected Industries and Employment Insurance Blind Spots
Government to Rapidly Disburse 'Emergency Disaster Relief Fund' Starting from the 4th

[Asia Economy Reporter Jo In-kyung] The Seoul Metropolitan Government is urgently preparing a second supplementary budget amounting to 2.8329 trillion won to revive the livelihood economy, which has rapidly frozen due to the novel coronavirus infection (COVID-19). This is the first time in Seoul's history that two supplementary budgets have been prepared in the first half of the year.

The city announced on the 3rd that following the first supplementary budget of 861.9 billion won for COVID-19 approved in March, it has prepared the '2020 2nd Supplementary Budget' which is more than three times larger, and plans to submit it to the city council on the 4th for review.

Seoul plans to maximize the effect through rapid execution by shortening all administrative procedures immediately after the city council's approval.

The supplementary budget first allocates 43.5 billion won to support business and employment maintenance in sectors directly hit by consumption contraction, decreased inbound tourists, and event cancellations, such as urban manufacturing, performance, hotel, and taxi industries, as well as to support workers in the blind spots of employment insurance.

Additionally, a total of 2.6671 trillion won (national funds 2.1833 trillion won, city funds 323 billion won, district funds 160.8 billion won) has been allocated for the government's 'Emergency Disaster Relief Fund' to be rapidly executed for all citizens, providing support ranging from 400,000 to 1 million won depending on the number of household members.

In particular, for households receiving basic livelihood security benefits, basic pensions, and disability pensions, which require urgent support, cash payments will be made collectively through welfare benefit accounts starting from the 4th without the need for separate applications.

Seoul is also investing 625.6 billion won in support for small business owners and self-employed individuals, including the pioneering 'Self-Employed Survival Fund,' providing a stepping stone for those facing desperate situations due to COVID-19.

Furthermore, 180 million won has been allocated for design competition costs for the construction of the 'Safe Respiratory Specialist Center' (within Boramae Hospital) to strengthen infectious disease response capabilities, and 7.4 billion won for 'Temporary Living Support for Low-Income Groups' reflecting additional national funds for consumption coupons for basic livelihood recipients.

The city explained that to prepare this supplementary budget, it secured all available resources to the maximum extent possible, and for insufficient funds, it conducted drastic structural adjustments such as re-examining existing projects from scratch or adjusting project schedules to reduce expenditure budgets.

Park Won-soon, Mayor of Seoul, said, "This second supplementary budget focuses on direct cash support that practically helps livelihoods, rather than indirect support such as loan assistance or rent reductions, to enhance citizens' perception of the support. We will prepare additional comprehensive measures until citizens' suffering is alleviated and Seoul's economy recovers."

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