Government to Promote Revenue Support for Non-Compensated Sectors... Including Lodging and Wedding Halls

[Sejong=Asia Economy Reporter Son Seonhee] Despite being excluded from the loss compensation targets, the government is considering additional support measures for industries affected by the COVID-19 pandemic. The industries subject to occupancy limits per facility area, such as lodging, wedding and funeral halls, and performances, are the focus.

According to government authorities on the 31st, support plans such as increasing consumption coupons, various discount events, and supplying low-interest loans are being reviewed for industries not eligible for loss compensation. While sales support is being promoted, the government's position is that there will be no 'cash support' for these industries. However, the ruling party, the Democratic Party of Korea, insists that cash support should also be provided to these sectors, making negotiations between the government and the party necessary.

The primary candidates for support are lodging, art museums, kid cafes, wedding and funeral halls, and performance venues that were subject to occupancy limits per facility area. Although their sales declined due to these occupancy restrictions, they were excluded from the current loss compensation because they were not subject to direct restrictions such as 'closure orders or operating hour limitations.'

Industries in the culture, sports, and tourism sectors, such as travel agencies and some sports facilities, which suffered indirect damage due to strict social distancing measures, are also expected to be considered for sales support. This would involve increasing the budget for consumption coupons for related industries or conducting various discount events.

The funding for sales support for these industries is being considered through reallocating already allocated budgets or utilizing related funds. Expanding low-interest loans may also include easing the conditions for using policy funds.

The government plans to establish and implement support measures for industries excluded from loss compensation by November. Additionally, the related budget is expected to be increased during the National Assembly’s budget review process for next year, starting next month.

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