Government's 3rd Disaster Relief Fund Up to 3 Million Won... Scheduled for Distribution Starting Early Next Year

On the 24th, Namdaemun Market in Jung-gu, Seoul is quiet due to the impact of the novel coronavirus disease (COVID-19). Photo by Asia Economy

[Asia Economy Reporter Hana Na] The government is finalizing plans to provide disaster relief funds of up to 3 million KRW to small business owners and self-employed individuals affected by the third wave of the novel coronavirus infection (COVID-19), along with rent support measures.

The 3 million KRW relief fund includes business stabilization funds ranging from 1 million to 2 million KRW for small business owners who have experienced a sharp decline in sales or have been subject to business restrictions or closures, plus approximately 1 million KRW in direct rent support.

According to the Democratic Party of Korea and the Ministry of Economy and Finance on the 27th, the government will announce tailored damage countermeasures for the third wave of COVID-19 within this week. The related matters were discussed at a high-level party-government-civil meeting on the day and are expected to be finalized through the Cabinet meeting and the Central Disaster and Safety Countermeasures Headquarters meeting on the 29th.

The rent support fund is reportedly targeted not at general small business owners with decreased sales, but at those who have been subject to business restrictions or closures due to elevated social distancing measures. The rent support will be provided as a fixed amount in cash added to the business stabilization funds, regardless of sales volume, region, or rent amount.

Additionally, a comprehensive support package is under final review, including a tax law amendment to increase the tax credit level for 'good landlords' who voluntarily reduce rent from the current 50% to 70%, and expanded policy financial support for small business owners.

Furthermore, the party and government are reviewing the inclusion of a third round of emergency employment stabilization funds for vulnerable employment groups such as workers in special employment types. Previously, the government provided 500,000 KRW support to special employment workers, freelancers, and youth during the fourth supplementary budget.

Meanwhile, the differentiated support method based on simple sales decline (1 million KRW according to the fourth supplementary budget), business restrictions (1.5 million KRW), and business closures (2 million KRW) is expected to be applied again this time.

The scale of the government's third disaster relief fund is expected to be around 5 trillion KRW, with payments scheduled to begin early next year.

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