Government Prepares '9 Trillion Won Livelihood Stabilization Measures' Including 7 Trillion Won 4th Package

Announcement Expected as Early as This Week
Extension of Special Period for Employment Retention Support Fund
Review of Utility and Electricity Fee Reductions and Payment Deferrals
Strengthening Consumption and Contactless Measures for Revitalization

Hong Nam-ki, Deputy Prime Minister for Economy and Minister of Strategy and Finance (file photo) [Image source=Yonhap News]

[Sejong=Asia Economy Reporter Joo Sang-don] The government is preparing an emergency livelihood stabilization plan worth up to 9 trillion won by adding a 7 trillion won-scale 4th supplementary budget and a 1 trillion won-scale economic measure. This plan is expected to be announced as early as this week.

On the 8th, a senior government official said, "Since various support measures were prepared on the assumption that the COVID-19 situation would calm down in the second half of this year, we are considering an overall livelihood stabilization plan, including extending the period of previous support measures, including the 4th supplementary budget."

Earlier, Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki also hinted at additional support. On the 5th, during the annual consultation with the international credit rating agency Fitch, Deputy Prime Minister Hong stated, "We plan to devise customized support measures for vulnerable groups such as small business owners and self-employed individuals, and adjust and supplement economic revitalization measures for investment, exports, and consumption to reflect the recent quarantine situation for the second half economic rebound." Since the 4th supplementary budget focuses on selective payment of the second disaster relief fund targeting vulnerable groups such as small business owners, self-employed individuals, employment-vulnerable groups, and low-income households, it is expected that all remaining contingency funds will be mobilized for economic measures. The scale is expected to be around 1 trillion won.

The government is first reviewing the extension of the special period for the Employment Retention Support Fund (which raises the payment amount to up to 90% of leave or suspension allowances), which is set to end at the end of this month. Support measures related to employment retention, stability, and job-seeking promotion are also expected to be included. Additionally, the extension of payment deferrals and reductions for the four major social insurance premiums?health insurance, industrial accident insurance, national pension, and employment insurance?as well as electricity bills, mainly targeting low-income households and businesses with fewer than 30 employees, is under consideration. For small and medium-sized enterprises, discussions are underway regarding the extension of existing measures such as utility payment deferrals and additional financial support plans.

Due to the resurgence of COVID-19, consumption promotion measures such as the distribution of consumption coupons, which had been suspended, will be shifted to focus on contactless methods. Along with this, measures to stabilize prices for ordinary citizens, including expanding the supply of seasonal goods ahead of Chuseok and releasing stockpiled items damaged by heavy rains and typhoons, are also expected to be included in this livelihood stabilization plan.

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