Deputy Prime Minister Hong: "National Support Fund to Begin Distribution Before Chuseok" (Update)

The 44th Emergency Economic Central Countermeasures Headquarters Meeting

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance [Image source=Yonhap News]

[Sejong=Asia Economy Reporter Son Seon-hee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, announced on the 26th, "We will start distributing the national support funds before Chuseok."

The COVID-19 coexistence national support fund, prepared through the government's second supplementary budget, is expected to be paid at 250,000 KRW per person to approximately 88% of the population in the lower income brackets. Originally focused on "stimulating consumption," the government had been considering the timing of the payment as the quarantine situation worsened last month, and has now confirmed the policy to "start payment before Chuseok."

On the morning of the same day, Deputy Prime Minister Hong presided over the 44th Emergency Economic Central Countermeasures Headquarters meeting at the Government Complex Seoul and said, "The government will speed up vaccination for early herd immunity in August and September and prioritize the stabilization of livelihoods for the underprivileged and vulnerable groups."

At the Emergency Economic Central Countermeasures Headquarters meeting, the "Chuseok livelihood stabilization measures" and "additional support plans for small business owners" were discussed.

Regarding the recent surge in prices ahead of the Chuseok holiday, Deputy Prime Minister Hong stated, "The supply of 16 major Chuseok seasonal items will be expanded by more than 25% compared to last year, and the supply will begin a week earlier, starting from the 30th. In particular, the so-called four major items?eggs, beef, pork, and rice?will be intensively managed."

In addition, along with the start of the national support fund payments, he said, "90% of the Small Business Hope Recovery Fund will be paid before Chuseok, and the earned income tax credit and child tax credit will also be advanced from the end of September to the end of this month."

Especially, the government will provide new financial support totaling 41 trillion KRW around Chuseok for small business owners and self-employed individuals who have been pushed to their limits by prolonged high-intensity social distancing. For small business owners and SMEs, the payment deadlines for VAT and comprehensive income tax will be extended to January through March of next year, and existing support such as deferrals for employment, industrial accident, national pension insurance premiums, as well as electricity and city gas bills will be extended for another three months.

Deputy Prime Minister Hong said, "Regarding financial support such as loan maturity extensions, a review will be completed and announced in September," and added, "A separate announcement on special quarantine measures during the Chuseok holiday period will also be made next month."

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