[Q&A] Emergency Disaster Relief Fund Can Be Used for On-site Payment in Delivery Apps

[Asia Economy Reporter Jo In-kyung] The Ministry of the Interior and Safety will provide 'Emergency Disaster Relief Funds' in cash starting from the 4th to households receiving urgent support under the Basic Livelihood Security Livelihood Benefit, Basic Pension, and Disability Pension programs.

For citizens who are not eligible for cash benefits, from the 11th, they can apply for the funds through point charging on their existing credit or debit cards, and from the 18th, they can apply for local love gift certificates or prepaid cards at their town, township, or neighborhood community centers or local treasury banks.

The following are questions and answers related to the Emergency Disaster Relief Funds from the briefing session.

Q. Since the government’s Emergency Disaster Relief Fund includes contributions from cities and provinces, can the actual amount received vary by region?

- Initially, the Emergency Disaster Relief Fund support target was set at the bottom 70% income bracket when the budget was submitted, but during the National Assembly discussions, it was decided to provide support to all income brackets including the top 30%. Because the population composition ratio of the top 30% varies by local government, the subsidy ratio to each local government may ultimately differ.

However, the fundamental intent from the National Assembly was to ensure that even if the support target is expanded to all income brackets, there would be no financial burden on local governments. Local governments are preparing to ensure that there are no such issues and that payments can be made according to the government’s standard amount.

Q. If the disaster relief funds are donated, can tax credit benefits be received? For workers who have no income tax to pay, can they voluntarily donate but not receive tax credit benefits under the current system?

- The Ministry of Employment and Labor will provide a separate explanation regarding donation collection next week. Currently, tax credit benefits are available for donations using the tax credit system, but it is difficult to provide tax credit benefits to those who do not have taxes to pay. However, since the system’s benefits are valid for 10 years, if a situation arises where taxes must be paid during that period, tax credit benefits can be received.

Q. There is confusion because detailed guidance on exactly where the Emergency Disaster Relief Funds can be used has not been provided. Where can one find specific information about industries where the funds can or cannot be used? Can the funds be used on delivery apps?

- Citizens who choose credit or debit cards can check on the relevant website which industries they can use the funds in, or which industries are restricted. The industry restrictions for credit and debit cards are set the same as those for the childcare coupons issued in April and those provided by the Ministry of Health and Welfare.

For prepaid cards and local love gift certificates prepared by local governments, you can check the related industry proposals on the local government websites. Delivery apps can be used if payment is made on-site.

Q. When receiving the funds via credit or debit card, do users need to inform the place of use in advance that they are using the Emergency Disaster Relief Funds?

- If the place of use falls under the eligible industries for credit or debit cards, the amount will be deducted first from the Emergency Disaster Relief Fund points. There is no need to inform them separately.

Q. For local love gift certificates, it is recommended to use them by August 31. Can they still be used after that date?

- Local love gift certificates have a circulation period of 5 years according to the ordinance. Therefore, the paper-type local gift certificates received can be used for 5 years. However, considering the purpose of this Emergency Disaster Relief Fund, it is recommended to use them by the end of August.

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