'250,000 Won Per Person' National Support Fund, Payment Starts Before Chuseok... 90% Distributed by Next Month (Comprehensive Report 2)

Hong Nam-ki, Deputy Prime Minister for Economy and Minister of Strategy and Finance, is speaking while presiding over the 'Emergency Economic Central Countermeasures Headquarters Meeting' held at the Government Seoul Office in Jongno-gu, Seoul on the 26th. Photo by Kim Hyun-min kimhyun81@

[Sejong=Asia Economy Reporter Kim Hyunjung] The government’s COVID-19 coexistence national support fund, which provides 250,000 won per person to about 88% of the entire population, will begin distribution before Chuseok. The coexistence consumption support fund (card cashback), which had not been scheduled due to the spread of COVID-19, will be calculated starting from consumption in October. In addition, ahead of the Chuseok holiday, the government plans to ease the burden on ordinary citizens caused by rising prices through expanding the supply of essential goods and managing prices, while also providing financial support worth 41 trillion won for small business owners and self-employed individuals, and postponing various tax and utility payments.

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki announced this on the morning of the 26th while presiding over the Emergency Economic Central Countermeasures Headquarters meeting at the Seoul Government Complex. The coexistence national support fund, prepared for consumption stimulation through the second supplementary budget, had its payment schedule weighed by the government as the quarantine situation worsened last month, but the timing was finalized as a measure to stabilize livelihoods during Chuseok.

◆Disbursing support funds before the holiday and expanding loans and guarantees for small business owners= The national support fund is distributed based on income calculated from the sum of household health insurance premiums paid by the insured in June. For a four-person household, workplace subscribers with 308,300 won or less and regional subscribers with 342,000 won or less receive the support fund. Dual-income households are calculated as having one additional household member, and single-person households receive the fund if their health insurance premium paid is 143,900 won or less (workplace subscriber standard), corresponding to an annual income of 50 million won or less. Even if these criteria are met, the total taxable standard for property tax last year (9 billion won or less) and financial income criteria (20 million won or less) must also be satisfied.

Along with this, the government will provide cash support payments, financial and tax support, etc., to ensure that small business owners and SMEs do not face difficulties before and after Chuseok. The small business owners’ hope recovery fund, prepared through the second supplementary budget, will be supported at over 90% before Chuseok, and compensation for losses after July under the Loss Compensation Act will begin to be paid at the end of October.

While continuing the emergency liquidity program worth a total of 6 trillion won, including low-credit and rent loans, the government will supply new loans and guarantees totaling about 41 trillion won through policy banks and commercial banks. The payment deadlines for value-added tax and comprehensive income tax for small business owners and SMEs will be extended by three months. VAT can be paid by January next year, and comprehensive income tax by February next year. Electricity and gas bills for small business owners and vulnerable groups for October to December will also be deferred for three months with six-month installment payments allowed.

The prices of major ingredients frequently appearing on ordinary people's tables continue to rise, which is expected to increase the burden of preparing holiday meals for Chuseok, now just a month away. The photo shows citizens shopping at the Nonghyup Hanaro Mart Yangjae branch in Seocho-gu, Seoul, on the 17th. Photo by Kim Hyun-min kimhyun81@

◆Increasing supply of essential goods 2.4 times and resuming dining discount coupons= The government will expand the supply of agricultural products to 2.4 times the normal level to reduce price burdens, reflecting the recent rise in prices. First, the daily supply volume of 16 essential goods will be increased by 1.4 times compared to normal, and the total supply volume will be expanded by 39,000 tons compared to last year’s Chuseok period. Four major items including eggs, beef and pork, and rice will be managed separately, with 100 million eggs to be imported in September as well.

To reduce the burden of core living expenses, disaster medical expense support will be expanded in the fourth quarter, and employment-contingent student loan repayment support will be extended to graduate students. Low-income and multi-child families will be exempt from loan interest during their enrollment period.

Additionally, from the 1st to the 22nd of next month, discount coupons for agricultural, livestock, and fishery products will be issued with a limit of 20,000 won per person and a 20% discount. At 44 traditional markets, when purchasing agricultural, livestock, and fishery products, 30% of the purchase amount will be refunded as Onnuri gift certificates, with a weekly limit of 20,000 won per person.

In the middle of next month, non-face-to-face and online dining discount coupons will be resumed. The dining coupons provide discounts for food orders through delivery apps; if a person orders food worth 20,000 won or more three times, they will receive a 10,000 won refund on the fourth order. Furthermore, a special online exhibition of traditional markets involving about 350 markets will be held, allowing the purchase of traditional market products through online platforms.

In preparation for the spread of COVID-19, health center screening clinics will operate normally during the Chuseok holiday period, and temporary screening clinics will be additionally installed at highway rest areas, KTX stations, and express bus terminals. Detailed measures will be announced next month through the “Special Quarantine Measures for the Chuseok Holiday Period,” considering the COVID-19 spread trend and social distancing adjustment directions. Considering the quarantine situation, programs such as focused education on “non-face-to-face holiday programs,” free video call support during Chuseok, and special KTX discount products for Koreil members who do not visit their hometowns during Chuseok will be promoted. Joint Chuseok safety management measures by related ministries and local governments will be established next month, and the Central Disaster and Safety Situation Room will operate 24 hours to respond immediately in case of emergencies.

Deputy Prime Minister Hong Nam-ki explained, “The fourth wave of COVID-19 and continued strengthening of quarantine measures have increased the limits of endurance for small business owners and self-employed individuals,” adding, “We are presenting Chuseok livelihood stabilization measures to make the holiday a little warmer.”

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