Party-Government-Blue House "Up to 3 Million Won Paid by January... 70% Tax Credit for Rent Reduction" (Comprehensive 2)

Ruling Party, Government, and Blue House Announce COVID-19 Damage Support Measures
Uniform Payment of 1 Million Won in Damage Support Funds... Up to 3 Million Won
Tax Credit for 'Rent Reduction' Raised to 70%
Vaccination for Medical Staff and Elderly to Begin in February Next Year

[Image source=Yonhap News]

[Asia Economy Reporter Kang Nahum] The Democratic Party, the government, and the Blue House have decided to provide differentiated support of 1 million to 3 million KRW to small business owners and self-employed individuals affected by the COVID-19 crisis. Additionally, tax benefits for so-called ‘good landlords’ who voluntarily reduce rent will be significantly expanded.

Choi In-ho, the senior spokesperson for the Democratic Party, held a briefing on the afternoon of the 27th immediately after the high-level party-government-Blue House meeting, stating, "The tailored damage support measures in response to the third wave of COVID-19 will be prepared in a sufficiently large scale, greatly exceeding the 3 trillion KRW level of contingency funds reflected by the National Assembly, by mobilizing all available resources such as changes to the contingency fund."

The party, government, and Blue House will first push forward a plan to provide up to 3 million KRW, including rent, to small business owners and self-employed individuals affected by COVID-19. The support will be provided as a uniform payment of 1 million KRW, with an additional 1 million KRW for businesses subject to gathering restrictions and 2 million KRW for businesses subject to gathering bans. The goal is to complete payments by January next year.

Furthermore, to further reduce the rent burden on small business owners, low-interest loan funds will be provided, and for landlords with income below a certain level, the tax credit for rent reductions will be increased to 70%. Related tax law amendments will be promptly pursued in the temporary National Assembly.

Additionally, alongside a three-month deferral of electricity bill payments from January to March next year, employment and industrial accident insurance premiums will also be deferred for three months, and exemptions for National Pension premiums will be expanded for three months, implementing measures to reduce social insurance burdens.

[Image source=Yonhap News]

Separate income stabilization support payments will also be provided to special-type workers (teukgo), freelancers, visiting and care workers who are facing employment difficulties due to COVID-19.

Moreover, the party, government, and Blue House will focus on medical support by reinforcing infrastructure such as negative pressure beds at infectious disease treatment hospitals. Compensation for losses to alleviate the financial difficulties of medical institutions will also be provided.

These support measures are expected to be finalized through a government announcement on the 29th. Senior spokesperson Choi said, "Cash support such as the small business owner support fund will be executed from early January with maximum simplification of procedures," adding, "The budget for quarantine activities and tailored support packages will be executed swiftly from January 1, continuing from this year’s budget execution."

The party, government, and Blue House also announced a vaccination plan targeting medical personnel and the elderly in February next year. Presidential Chief of Staff Noh Young-min stated at the meeting, "We have already secured sufficient quantities to protect our people," and "Vaccinations targeting medical personnel and the elderly will begin in February next year."

He added, "Countries around the world plan to start vaccinating the general public in the second quarter of next year," and "We will also begin vaccinating the general public around the same time."

He further explained, "The timing for achieving herd immunity will be similar to or even earlier than other countries," and "The government is making every effort to advance this timing and is achieving results."

Prime Minister Chung also commented on the vaccine introduction timeline, saying, "It is difficult to specify an exact time as it greatly depends on the production capacity of each pharmaceutical company, but we are conducting additional negotiations to ensure introduction as early as possible."

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