Emergency Disaster Relief Fund Donation Q&A... "Is 50,000 Won Enough?"

On the 4th, when the government began distributing emergency disaster relief funds in response to the COVID-19 pandemic, an official posted a notice about the relief funds at a community center in Jongno-gu, Seoul. Priority recipients include 2.8 million households deemed in urgent need of support, such as those receiving livelihood benefits, basic pensions, or disability pensions, and the funds are provided in cash. Citizens not eligible for cash payments can choose to receive the support through credit or debit cards, paper/mobile/card-type local gift certificates, or prepaid cards. Photo by Kim Hyun-min kimhyun81@

[Sejong=Asia Economy Reporter Kim Hyunjung] Starting tomorrow (the 11th), the government will begin accepting applications for the Emergency Disaster Relief Fund through credit card company websites. At the same time, recipients can decide whether to donate and express their intention. Questions related to donations of the disaster relief fund have been organized in a Q&A format.

Q: How do I donate?

A: Along with the application for the Emergency Disaster Relief Fund on the 11th, the government will also accept donation applications. There are three ways to apply for donations: ▲indicating refusal at the time of fund application ▲applying for donation after receiving the fund ▲not applying for the fund within 3 months. First, you can express your intention when applying for the fund through the credit card company website, bank counters linked with the credit card company, or local government offices. If you do not apply for the fund within 3 months from the start date of application, it will be considered that you intend to donate, and the amount will be processed as a donation. If you initially decided to receive the fund but want to convert it to a donation later, you can apply to the Korea Workers' Compensation & Welfare Service.

Q: What benefits do I get if I donate?

A: If you donate the Emergency Disaster Relief Fund, you can receive a tax credit according to the Income Tax Act. A 15% tax credit is applied during year-end tax settlement. If the total annual donation amount exceeds 10 million KRW, a 30% tax credit is possible. However, even workers with income are excluded from the deduction benefits if they are below the tax exemption threshold and have no tax payable from the start.

Q: Can I donate only 50,000 KRW if I receive 1 million KRW?

A: Of course, it is possible. When applying for the fund, you can indicate your intention to donate and specify how much you want to donate. When applying for the fund at the credit card company or bank counter, if you select the 'donation amount,' the fund will be paid excluding that amount.

Q: Can I donate more than the fund amount?

A: Yes, this is also possible. Donations exceeding the fund amount can be made by applying to the Korea Workers' Compensation & Welfare Service (Workers' Welfare Promotion Fund) and expressing your intention.

Q: Where is the donated money used?

A: The collected donations are incorporated into the Employment Insurance Fund revenue (private contributions). They will be used as resources for the COVID-19 crisis response employment stabilization projects. It is expected to be used for employment retention, worker livelihood stabilization, emergency job creation subsidies, vocational training, and more. The government plans to significantly increase support for employment retention and sustainable job creation in the future. The more donations collected, the more related resources are secured, which can reduce government bond issuance.

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