Seoul City and Districts Take Action... 500 Billion Won Disaster Relief Fund to 1 Million Businesses and Individuals

200 Billion KRW from Autonomous Districts, 300 Billion KRW Matching Fund from Seoul City... 12 Projects in 3 Major Areas Including Small Businesses, Vulnerable Groups, and Severely Affected Industries
Seo Jeong-hyeop, Acting Mayor: "335,000 Businesses and 700,000 Citizens to Benefit... 500 Billion KRW Interest-Free Loans for Small Businesses Also Provided"
Lee Dong-jin, Chairman of District Mayors' Council: "Expected to Supplement Government Disaster Relief Blind Spots"

[Asia Economy Reporter Lim Cheol-young] The 25 autonomous districts of Seoul and the Seoul Metropolitan Government will selectively provide disaster relief funds worth 500 billion KRW to vulnerable groups and industries severely affected by COVID-19, including small business owners.

On the morning of the 22nd, Seo Jeong-hyeop, Acting Mayor of Seoul, and Lee Dong-jin, Chairman of the Seoul District Mayors' Council, announced in a press briefing that they would raise 200 billion KRW from the autonomous districts and 300 billion KRW from the Seoul Metropolitan Government, totaling 500 billion KRW, to provide the city-district cooperative disaster relief fund called the 'Crisis Overcoming Disaster Relief Fund.' This disaster relief fund, which supplements the government's 4th disaster relief fund, was decided after more than 10 rounds of coordination regarding the timing, recipients, and amounts of the payments.

Acting Mayor Seo explained, "With a budget of 300 billion KRW from Seoul and 200 billion KRW from the autonomous districts, the actual support scale including loans amounts to approximately 1 trillion KRW," adding, "About 335,000 businesses and 700,000 citizens, totaling around 1 million businesses and individuals in crisis in Seoul, will benefit." This is the first time that an interest-free loan of 500 billion KRW has been provided to small business owners in the 25 autonomous districts who need emergency operating funds, with an expected 25,000 beneficiaries.

The 500 billion KRW disaster relief fund consists of 12 projects across three major areas: small business owners, vulnerable groups, and industries with actual damage. First, small business owners who suffered the most severe damage from COVID-19 will receive the 'Seoul Economic Vitality Fund' of up to 1.5 million KRW per business for 275,000 businesses in the gathering ban and restricted sectors, separate from the government's 4th disaster relief fund. Additionally, about 48,000 small businesses in the gathering ban and restricted sectors that closed after March last year and were not included in the government's 4th disaster relief fund will receive a 500,000 KRW 'Damage Support Fund.'

For small business owners needing emergency operating funds, a total of 500 billion KRW in interest-free loans will be provided. This is the first interest-free loan program targeting all 25 autonomous districts, with an expected 25,000 beneficiaries.

Support will also be provided to vulnerable groups such as low-income households and unemployed youth. Seoul and the autonomous districts will provide an additional 100,000 KRW per person in 'Living Expense Support' to 458,909 low-income vulnerable individuals, including basic livelihood security recipients, near-poverty groups, and legally single-parent families who are experiencing livelihood crises such as personal bankruptcy due to the spread of COVID-19. Furthermore, 171,000 unemployed youth aged 19 to 34 who graduated within the last two years will receive 500,000 KRW per person in 'Employment Support.'

Additional support has also been added for industries with actual damage. To help the transportation industry, which is facing a crisis due to COVID-19 and continues to serve as the public's means of transportation, about 30,000 transportation workers including village bus, charter bus, airport bus drivers, and corporate taxi drivers will receive 500,000 KRW per person in damage support. For the culture and arts sector, which has a high proportion of freelancers, contract, and part-time workers, 10,000 people will receive 1 million KRW each. For the tourism and MICE industries, which have halted operations due to social distancing and international travel restrictions, 5,000 small businesses with fewer than five employees will receive 2 million KRW per business.

Support will also be extended to daycare centers and local children's centers. Seoul and the autonomous districts will provide 1 million KRW per facility to 5,081 daycare centers struggling with prolonged closures due to social distancing and 429 local children's centers facing increased operating costs due to emergency care demands. Additionally, up to 1 million KRW will be provided to 1,036 elderly care facilities, which have faced difficulties due to strict quarantine measures for high-risk groups during COVID-19.

Chairman Lee Dong-jin of the council said, "Additional support for industries affected by gathering bans or restrictions considers the relatively high rent costs in Seoul," adding, "Support for industries excluded from other government disaster relief funds, support for unemployed youth, interest-free loans for small business owners, and support for low-income groups such as basic livelihood recipients are expected to fill the blind spots of government disaster relief funds."

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