Hong Nam-ki: "Nationwide Support Payments to Begin Before Chuseok... 41 Trillion KRW New Financial Support for Self-Employed" (Comprehensive)

Deputy Prime Minister Chairs Emergency Economic Central Countermeasures Meeting
Taking Steps to Manage Prices Including Expanding Supply of Chuseok Seasonal Goods... Strengthening Support for Small Businesses and Vulnerable Groups

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kim Hyunjung] The government is promoting a total of 41 trillion won in financial support to alleviate the difficulties faced by small business owners and self-employed individuals due to the spread of COVID-19, and is extending the payment deadlines for various social insurance premiums and utility bills by an additional three months. Additionally, ahead of Chuseok, the government plans to increase the supply of major Chuseok seasonal products by 25% compared to last year and will implement focused price management to ease the burden on ordinary citizens caused by rising prices.

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, presided over the 44th Emergency Economic Central Countermeasures Headquarters meeting on the morning of the 26th and stated in his opening remarks, "We will pay 90% of the Small Business Hope Recovery Fund before Chuseok, and the National Support Fund will also begin to be distributed before Chuseok."

With these measures, the government plans to advance the early payment of the Earned Income Tax Credit and Child Tax Credit (4.1 trillion won) from the end of September to the end of August and expand the supply of financial support for low-income earners through contributions to the Korea Inclusive Finance Agency from 7-8 trillion won annually to 9-10 trillion won. In particular, it will provide new financial support amounting to 41 trillion won for small business owners and SMEs around Chuseok, and extend the payment deadlines for VAT and comprehensive income tax to January-February next year. It is expected that about 2.7 million people and 6.2 trillion won will be subject to the extension of VAT and income tax payments. Furthermore, support such as deferrals for employment, industrial accident, national pension insurance premiums, and electricity and city gas bills will also be postponed by three months.

Moreover, to strengthen the competitiveness and capabilities of the self-employed, support will be expanded for ▲ assistance in business closure and restart for small business owners ▲ re-entrepreneurship in promising sectors ▲ digitalization, smartization, and entry into online platforms. Regarding financial support such as loan maturity extensions, a review will be completed and announced in September.

The government will also begin managing prices of seasonal products ahead of Chuseok. First, the supply of 16 major items will be significantly increased by more than 25% compared to last year, and the supply period will be advanced by one week, starting from the 30th. In particular, the so-called four major items?eggs, beef and pork, and rice?will be under focused management, and the restocking of hens at farms affected by culling will be completed before Chuseok. The remaining 80,000 tons of government rice stocks will also be released starting at the end of August.

At the meeting, Deputy Prime Minister Hong also discussed plans to expand ESG (Environmental, Social, and Governance) infrastructure and announced that the K-ESG guidelines will be prepared within the year to establish a virtuous cycle system between the spread of ESG management and investment activation. He explained, "By the end of this year, we will promote the establishment of an ESG management and investment information platform and system linkage, and also prepare a Korean-style green classification system (K-Taxonomy) to promote investment. We are also considering the introduction of sustainability-linked bonds as one type of ESG bond, and will promote tax credit support for ESG management costs for SMEs."

Additionally, following the meeting, the government plans to jointly prepare and announce a 'Venture Ecosystem Supplementary Plan' with related ministries to spread the second venture boom.

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