Temporary Use of 'Disaster Management Fund Mandatory Deposit' for Flood Damage Recovery

Amendment to the Enforcement Decree of the Framework Act on Disaster and Safety Management Passed at the Cabinet Meeting

The rainy season in the central region has continued for 49 days, setting a record for the longest duration. On the 11th, the Han River Park near the northern end of Hangang Bridge in Seoul was submerged. According to the Korea Meteorological Administration, the rainy season in the central region began on June 24 and has continued for 49 days as of this date. As a result, this year is recorded as having the longest rainy season along with 2013, which also lasted 49 days. Photo by Kim Hyunmin kimhyun81@

[Asia Economy Reporter Jo In-kyung] Local governments are now allowed to use the mandatory deposits of disaster management funds to repair damages caused by the heavy rains in August.

The Ministry of the Interior and Safety announced on the 1st that the "Enforcement Decree of the Framework Act on Disaster and Safety Management," which includes this provision, was passed at the Cabinet meeting. Considering the unprecedented record-breaking heavy rains that caused large-scale nationwide damage amid the prolonged COVID-19 pandemic, which has worsened the financial situation of local governments, there were concerns about financial shortages for flood recovery in local governments.

Accordingly, each local government will be able to utilize the mandatory deposits as additional resources for recovery from the recent heavy rain damage, enabling faster restoration efforts.

The mandatory deposit amount of the disaster management fund is a portion of the amount that each local government must annually allocate to the fund, which is separately deposited and managed. Its use is restricted during normal times and only permitted in large-scale disaster situations. Currently, the total mandatory deposit amount across all local governments reaches approximately 1.1 trillion KRW.

Earlier in March, the Ministry of the Interior and Safety also temporarily expanded the use of mandatory deposits to support small business owners and vulnerable groups affected by COVID-19 and to manage infectious diseases.

Minister Jin Young of the Ministry of the Interior and Safety emphasized, "In a situation where COVID-19 damage is compounded by heavy rain damage, we hope that available budgets will be maximally utilized to ensure swift recovery." He added, "We will continue to do our best to provide administrative and financial support at the central government level so that local governments can focus on COVID-19 response and damage recovery on the ground."

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