Amid Prolonged COVID-19, 4th Supplementary Budget in 59 Years... "Targeted Support, Not for All Citizens"

Government Moves Toward Targeted Pinpoint Support for Small Business Owners and Employment-Vulnerable Groups
Governor Lee Jae-myung: "Will Faithfully Follow Government and Ruling Party Decisions"
"However, the Outcome of Selective Payments Could Be Serious and Risky... Need to Consider Various Scenarios and Alternatives," He Points Out

Lee Nak-yeon, leader of the Democratic Party of Korea, is attending the high-level party-government meeting held at the Prime Minister's official residence in Jongno-gu, Seoul on the 6th. Photo by Moon Ho-nam munonam@

[Sejong=Asia Economy Reporter Kim Hyunjung] As the COVID-19 pandemic prolongs, the ruling party and the government have virtually confirmed the formulation of the 4th supplementary budget (supplementary budget) for the first time in 59 years. However, unlike the nationwide disaster relief fund provided through the previous 3rd supplementary budget, they have decided to focus on tailored "pinpoint support" for small business owners and employment-vulnerable groups who suffered damage due to strengthened quarantine measures against COVID-19.

On the 6th, Prime Minister Chung Sye-kyun held an emergency high-level party-government meeting on comprehensive livelihood and economic measures at the Prime Minister's official residence in Samcheong-dong, Seoul, stating, "We will prepare customized support measures without blind spots, focusing on vulnerable groups who have suffered significant damage, such as youth, workers in special types of employment, the unemployed, small business owners, self-employed, and low-income groups." Considering the seriousness of the COVID-19 spread, the party-government meeting originally scheduled for the 3rd was postponed by three days due to confirmed COVID-19 cases within the National Assembly.

Prime Minister Chung emphasized, "We will intensively promote efforts to minimize the spread of damage until the end of the year by expanding beneficiary criteria and preparing new support measures," adding, "We will execute the decided policies as quickly as possible and thoroughly check the implementation status to ensure the policy effects are clearly realized."

Prime Minister Chung Sye-kyun (center) is conversing with participants at the High-level Party-Government Council held on the 6th at the Prime Minister's Official Residence in Jongno-gu, Seoul. From the second left: Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance; Han Jeong-ae, Chair of the Policy Committee of the Democratic Party; Kim Tae-nyeon, Floor Leader; Prime Minister Chung; Lee Nak-yeon, Party Leader; Kim Sang-jo, Chief of the Presidential Policy Office. Photo by Moon Ho-nam munonam@

Lee Nak-yeon, leader of the Democratic Party of Korea, who attended the meeting, also said, "This 4th supplementary budget is to help citizens suffering due to the resurgence of COVID-19 and strengthened social distancing," explaining, "Having four supplementary budgets in one year is the first time in 59 years, which means the situation is that urgent." He added, "This 4th supplementary budget is characterized by the fact that all funds must be covered by national bonds, the COVID-19 situation is very fluid requiring flexible supplementary budget measures, and thus there is increased pressure to use borrowed money very wisely and efficiently." This was a remark to indirectly persuade those who argue that the support target through the 4th supplementary budget should be nationwide.

Earlier, Gyeonggi Province Governor Lee Jae-myung, who had strongly advocated for "nationwide payment," also announced that he would accept this selective support policy. Right after the party-government meeting, he explained on his Facebook, "As a member of the government and the party, I will faithfully follow the final decision of the government and ruling party," adding, "I will lead the execution on the front lines so that the state's support measures can quickly reach the people."

However, he also mentioned concerns about the results of selective payments. He emphasized, "The results of the second selective payment, which differs from the first, such as public anxiety, conflicts, and damage to solidarity, could be much more serious and dangerous than policymakers think," adding, "Therefore, numerous scenarios and alternatives must be carefully and meticulously examined, and that is the role of the state to protect the lives of all citizens, who are sovereigns, from crises." Earlier, he posted a message expressing concern, saying, "In a democratic republic where the people are the owners, I am very afraid of the aftershocks caused by discrimination forcibly imposed by representatives in a difficult and anxious crisis," and "I clearly see with my own eyes the conflicts and confusion caused by division, feelings of alienation due to exclusion, and resentment and betrayal toward the Moon Jae-in government, the Democratic Party, and further the state and community spreading like wildfire."

Meanwhile, the scale of this 4th supplementary budget is expected to be around 8 to 9 trillion won. Support will be provided to small business owners and micro self-employed based on the degree of damage such as sales decline, and employment-vulnerable groups such as workers in special types of employment and freelancers are expected to receive support payments of around 2 million won. The formulation of the 4th supplementary budget is the first in 59 years since 1961.

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