Seoyoungkyo: "Disaster Relief Payments Should Be Timed Nationwide... Strong Support Needed for Small Business Damage"

"Support Payments Should Be Given to All Citizens Who Overcame COVID-19 Together
About 4 Trillion Won Allocated for 'Selective Support Payments for Affected Small Business Owners' in the Supplementary Budget
Pass the Supplementary Budget in the July National Assembly to Provide Immediate and Stronger Support for Small Business Owners"

[Asia Economy Reporter Oh Ju-yeon] Seo Young-kyo, Chair of the National Assembly's Public Administration and Security Committee, emphasized on the 14th during the two-day review of the 2nd supplementary budget (supplementary budget) at the National Assembly Budget and Accounts Committee that a decision must be made to provide a 'nationwide disaster relief fund.'

[Image source=Yonhap News]

On that day, Chair Seo welcomed the Democratic Party of Korea's party resolution to provide the nationwide disaster relief fund, saying, "I urge the National Assembly Budget and Accounts Committee, which begins reviewing the supplementary budget today, to decide on the provision of the nationwide disaster relief fund." Chair Seo has repeatedly advocated for the nationwide disaster relief fund during the recent government questioning, the confirmation hearing of Prime Minister Kim Boo-kyum, and the full meeting of the Public Administration and Security Committee.

Chair Seo stated, "The nationwide disaster relief fund is not simply a one-time event. When all citizens directly spend a certain amount within a certain period, it revitalizes the economy," adding, "After the first nationwide disaster relief fund was provided last year, many small business owners said it felt like the peak holiday season. It helps the local economy that much." She also explained that since all citizens are overcoming COVID-19 together, it is appropriate to make the payment target the entire population.

Chair Seo emphasized, "Considering the administrative costs, administrative efforts, and essential personnel required for the 'income screening' of 10.4 trillion won for the bottom 80% income group and 1.1 trillion won for cashback support for the higher income group, the scale is comparable to providing funds to the entire population," and stressed, "Rather than support that causes division by distinguishing between upper and lower income groups, 'nationwide disaster relief' is the right approach."

She continued, "This supplementary budget includes not only disaster relief funds but also selective support funds separately allocated to strongly support COVID-19 affected industries, such as about 4 trillion won for small business damage support and 300 billion won for an additional 100,000 won support for low-income groups, as well as 2.6 trillion won for employment and livelihood safety support."

The 33 trillion won 2nd supplementary budget submitted to the National Assembly on the 2nd includes about 4 trillion won separately allocated for small business support, such as 3.3 trillion won in support funds providing up to 9 million won per person to small business owners in management crisis industries or those subject to gathering bans or business restrictions, and 600 billion won to support the decrease in small business owners' business income. Additionally, a budget of about 300 billion won was allocated to provide an additional 100,000 won per person to basic livelihood security recipients and near-poverty groups.

There is also 1.1 trillion won for early employment recovery support (direct jobs, vocational training, strengthening employment safety nets, etc.), 1.8 trillion won for youth jobs, startups, housing, and living support, as well as budgets for supporting the culture, arts, and tourism industries, and reinforcing safety nets for small business owners and vulnerable groups.

Due to the recent worsening of the COVID-19 situation and the issuance of the highest level 4 social distancing, damage to small business owners and self-employed individuals is expected, so discussions on increasing the budget to strongly support them are also expected during the National Assembly review process.

Chair Seo said, "Disaster relief funds have a significant effect on revitalizing the economy through consumption stimulation beyond damage support," and stressed, "Since COVID-19 has suddenly spread, the timing should be adjusted to provide support funds to all citizens who have overcome COVID-19 together."

She added, "The budget to support small business owners, who are expected to suffer significant damage due to the COVID-19 spread, should be paid immediately, and the National Assembly Budget and Accounts Committee must make a decision for the nation and the people so that the nationwide disaster relief fund can be used at a time when herd immunity is achieved and the economy can be revived."

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