Ruling Party and Government: "Additional Issuance of 5 Trillion Won in Local Gift Certificates and 10 Trillion Won Support for Small Business Funds"

3rd Supplementary Budget Party-Government Meeting at the National Assembly on the 1st
Specific Supplementary Budget Size to be Announced After the Cabinet Meeting
Hong Nam-gi: "It Will Be the Largest Single Supplementary Budget Ever"

[Image source=Yonhap News]

[Asia Economy Reporter Wondara] The Democratic Party of Korea and the government have agreed to include in the third supplementary budget bill for responding to the novel coronavirus infection (COVID-19) the additional issuance of Onnuri and Jiyoksarang gift certificates worth 5 trillion won, and the provision of 10 trillion won in emergency support funds for small business owners. The bill also includes social overhead capital (SOC) projects such as the maintenance of aging railways and rivers, and the installation of 41,000 public Wi-Fi spots.

Cho Jung-sik, the Democratic Party’s Policy Committee Chair, stated at a briefing held after the '2020 Second Half Economic Policy Direction and 3rd Supplementary Budget Party-Government Meeting' at the National Assembly on the morning of the 1st, "We had close prior consultations during the budget formulation process and shared the same intentions regarding key investment areas."

Chair Cho said, "To provide 10 trillion won in emergency support funds for small business owners, we will expand contributions to the Korea Credit Guarantee Fund and plan additional finances to secure liquidity of 30.7 trillion won for bond and securities stabilization funds for companies in aviation, shipping, and oil refining sectors."

He added, "To revitalize the local economy, we will issue an additional 2 trillion won and 3 trillion won worth of Onnuri and Jiyoksarang gift certificates respectively, each at a 10% discount. We will support 550,000 jobs using special hiring subsidies and resolve financial difficulties for low-credit workers, university students, and unemployed youth, as well as expand subsidies and loans for national veterans."

Regarding 'K-Quarantine,' he said, "We will support priority influenza vaccinations for 2.35 million people aged 14 to 18 and actively promote COVID-19 vaccine development and domestic production of related equipment."

SOC projects will also be promoted. Chair Cho stated, "To reduce communication costs, we will gradually install public Wi-Fi in 41,000 public places nationwide by 2022, build high-speed internet networks in 650 rural and island villages without internet access, and establish intelligent networks on major arterial roads."

He also said, "We will implement a pilot project to convert all kindergartens, elementary, and middle schools into Green Smart Schools. By 2022, we will reinforce high-efficiency insulation materials and ventilation systems in aging public buildings and convert 122,000 diesel cargo trucks and 28,000 children's school vehicles into eco-friendly vehicles."

He added, "Furthermore, we will focus investments on improving safety networks for aging tunnels, railways, railroad crossings, and river SOCs that require safety reinforcements."

The party and government plan to submit the supplementary budget bill to the National Assembly within this week and pass it by June. Chair Cho said, "The government has emphasized the urgent demand from the field awaiting financial support. The party will promptly complete the formation of the National Assembly and handle the supplementary budget bill during the June extraordinary session."

The specific scale of the supplementary budget will be announced after the Cabinet meeting. Chair Cho said, "I will not comment on the amount, but the outline will be revealed when the government submits it to the Cabinet meeting."

Regarding funding measures, he said, "Some will be secured through expenditure restructuring, and the rest will be financed through national debt."

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, who attended the party-government meeting, said, "After today's party-government meeting, we will finalize and announce the third supplementary budget bill following the emergency economic meeting presided over by the President in the afternoon. It will be the largest single supplementary budget in history." He added, "We plan to have the supplementary budget bill processed by the National Assembly on the 4th and will thoroughly prepare in advance to ensure that 75% of the budget is executed within three months."

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