[Economic Outlook] Supplementary Budget Passing the National Assembly Soon... Small Business Loan Limit Raised to 20 Million Won

September Consumer Sentiment Survey Results Released by Bank of Korea on the 25th

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The fourth supplementary budget bill (supplementary budget) is expected to be passed in the National Assembly next week. Key issues include communication expenses and flu vaccination costs. From August onwards, the loan limit for small business owners affected by the novel coronavirus infection (COVID-19) will be increased to 20 million won.

The ruling and opposition parties agreed to pass the supplementary budget bill through the Budget Subcommittee on the 21st and the plenary session on the 22nd. However, the People Power Party stated that they will carefully examine the necessity of each supplementary budget project.

The ruling and opposition parties have differing opinions on communication expenses, flu vaccination, and special childcare allowances for children. If the supplementary budget bill is passed on the 22nd, the government plans to send notification messages primarily to those eligible for prompt payment. Recipients can apply for the support funds online following the instructions in the notification message.

The second loan limit for small business owners will increase to 20 million won starting from the 23rd. Previously, the second loan handled by commercial banks allowed up to 10 million won per person, but it will now increase by an additional 10 million won.

Meanwhile, the Bank of Korea will release the results of the 'September Consumer Sentiment Survey' on the 25th.

In August, the Consumer Confidence Index (CCSI) was 88.2, up 4 points from July. Since the CCSI is below the long-term average value (2003?2019) baseline of 100, it means that consumer sentiment is still contracted compared to before COVID-19, but the index level has maintained a recovery trend for four consecutive months from May through August.

However, since the August consumer sentiment survey was conducted before the implementation of social distancing level 2 on August 16, the extent to which the resurgence of COVID-19 has impacted consumer sentiment is expected to be confirmed in the September index.

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