Vice Minister of Economy: "Additional Support of 100,000 Won per Person for Low-Income Households to Be Provided from the 24th"

42nd Emergency Economic Central Countermeasures Headquarters Meeting Regular Briefing

"Details of the Nationwide Support Fund to be Announced in August"

Lee Ok-won, 1st Vice Minister of Strategy and Finance./Photo by Hyunmin Kim kimhyun81@

[Sejong=Asia Economy Reporter Moon Chaeseok] Lee Okwon, Vice Minister of the Ministry of Economy and Finance, announced on the 5th, "Additional national support funds for low-income groups will begin to be distributed from the 24th."

Vice Minister Lee responded to a question about the detailed implementation plan for the national support funds during a regular briefing of the Central Disaster and Safety Countermeasure Headquarters meeting held in writing on the 5th.

The government had decided to provide an additional 100,000 KRW per person to 2.96 million low-income individuals, in addition to the COVID-19 coexistence national support fund (the 5th disaster relief fund), which gives 250,000 KRW per person to the bottom 88% income bracket.

Vice Minister Lee stated, "The detailed implementation plan for the (overall) national support funds, including payment criteria and usage locations, will be announced around mid-month based on the results of discussions by the pan-government task force (TF)."

He added, "The timing for implementing the coexistence national support fund (cashback) will be determined and announced later, considering the quarantine situation, and the detailed implementation plan will be provided before the project starts."

The government plans to review next month whether to extend financial support measures such as the extension of loan maturities and interest repayment deferrals set to expire by the end of next month. There is a risk that extending financial support could increase the proportion of non-performing loans.

When asked if a phased termination is being considered, Vice Minister Lee replied, "The decision on whether to extend further will be made next month after comprehensively considering the quarantine situation, real economy conditions, financial stability, and consultations with the financial sector."

According to him, as of the first quarter, the domestic banks' BIS (Bank for International Settlements) capital adequacy ratio stands at 16.7%, which is higher than the regulatory standard of 8%. Savings banks have a ratio of 13.9%, exceeding the regulatory standard of 7%. The BIS capital adequacy ratio is a key indicator used to assess the soundness of financial institutions.

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