Seoul City Invests 1.8071 Trillion Won in 'Comprehensive Livelihood Protection Measures'... Fills Government Compensation Gaps

7.816 trillion KRW for direct support projects such as funding and quarantine measures... 1.0255 trillion KRW for indirect support projects including loans and gift certificate issuance
1 million KRW 'Tenant Small Business Protection Fund' to ease rent burden for 500,000 micro self-employed
Additional 1 trillion KRW support for '4-No Safe Finance'... 500 billion KRW 'Seoul Love Gift Certificates' issued before Lunar New Year
1.549 trillion KRW support for 290,000 excluded from government loss compensation including special workers, freelancers, transport workers, and artists

The streets of Myeongdong felt even colder. It was not just because of the subzero temperatures. Due to the resurgence of COVID-19, the decrease in tourists, and the strengthening of social distancing measures, numerous rental inquiries, temporary closure notices, and business termination announcements were posted all over the shops in this area most affected. On the 7th, I captured images of about 100 closed stores on the streets of Myeongdong. Photo by Moon Honam munonam@

[Asia Economy Reporter Lim Cheol-young] On the 12th, the Seoul Metropolitan Government announced that it has finalized and will promptly implement the 'Seoul City Livelihood Protection Comprehensive Plan' worth 1.8 trillion KRW to restore livelihoods affected by the prolonged COVID-19 pandemic. This plan includes direct support projects amounting to 781.6 billion KRW, such as financial aid and quarantine measures, and indirect support projects worth 1.0255 trillion KRW, including loans and gift certificate issuance, making the total actual support scale 1.8071 trillion KRW?the largest ever.

This plan focuses on filling the gaps in government loss compensation. It concentrates investments in 16 detailed projects across three areas: 652.6 billion KRW for small business support, 154.9 billion KRW for support of heavily affected groups, and 50.1 billion KRW for expanding quarantine infrastructure. To this end, Seoul City has prepared a budget of 857.6 billion KRW in consultation with the city council, aiming to start sequential support before the Lunar New Year holiday. Mayor Oh Se-hoon explained, "Despite challenging fiscal conditions with a projected debt ratio of 26.01% by the end of this year, Seoul City will mobilize all possible means, including utilizing 400 billion KRW in local bonds, to fully commit to COVID-19 quarantine and restoring livelihoods."

First, 652.6 billion KRW will be invested to support small business owners and self-employed individuals who have been severely impacted by the prolonged COVID-19 pandemic. Approximately 500,000 small business owners and self-employed persons who pay monthly rent will receive 1 million KRW in cash support as 'Tenant Small Business Protection Funds.' This aims to alleviate the fixed cost burden of rent, which is the greatest concern for small business owners, especially where government loss compensation has been insufficient. Seoul City plans to start accepting applications from the 7th of next month.

The door of a closed store in Myeongdong, Seoul is firmly locked. The padlock is rusted, showing how much time has passed. We hope the COVID-19 situation settles soon so that small business owners and self-employed people can smile brightly again. Photo by Moon Honam munonam@

Last year's '4-No (無) Safe Finance' program, which invested 2 trillion KRW, will continue this year with an additional 1 trillion KRW in support. Up to 50,000 people are expected to receive loan support, with applications opening this month and support starting from the 20th, before the Lunar New Year holiday. Additionally, 500 billion KRW worth of 'Seoul Love Gift Certificates' will be issued before the Lunar New Year holiday at a 10% discount to help revive consumption in local neighborhood markets.

Various relief measures will also be implemented in the first half of the year. The temporary water bill reduction for small business owners, which was implemented in the second half of last year, will be extended for six months, reducing water usage charges by 50%. Rent reductions of up to 60% will be applied to tenants in public markets such as subways and underground shopping malls based on their sales decline rates. The tourism industry, which faces prolonged crisis due to the global spread of variant viruses, will receive 3 million KRW in 'Crisis Overcoming Funds.' This support is designed to cover government blind spots, helping businesses survive and prepare for the reopening of the tourism market.

Furthermore, Seoul City will invest 154.9 billion KRW to support citizens in blind spots who have experienced sharp income declines due to COVID-19 but are not covered by government loss compensation. According to a survey by Korea Research last year, over 90% of special-type workers and freelancers experienced income reductions averaging 57%. With decreased mobility after COVID-19, bus ridership dropped by 25%, and taxi operations decreased by 28%.

Accordingly, 250,000 special-type workers and freelancers will receive 500,000 KRW in 'Emergency Living Expenses.' Applications will begin at the end of March, with payments made in April and May. Bus drivers (6,130 people) and corporate taxi drivers (21,000 people) facing difficulties due to reduced passengers will each receive 500,000 KRW in 'Employment Stability Support' before the Lunar New Year. Vulnerable artists (13,000 people) earning less than 120% of the median income will also receive 1 million KRW in 'Living Stabilization Funds' starting in February.

Additionally, 50.1 billion KRW will be invested to prepare for a resurgence of COVID-19 by proactively expanding available quarantine resources. Seoul City will utilize large-scale idle sites to install and operate 100 emergency beds for moderate to severe patients, and expand the number of 'Outpatient Clinics' for face-to-face treatment of home care patients from 6 to 10 within this month. Along with expanding home treatment, 150 additional support personnel will be hired to alleviate workforce shortages on the ground, and wages for contract nurses will be increased by 43% compared to the previous year.

Mayor Oh said, "It is still far from enough to ease the pain of small business owners and self-employed individuals who have endured difficult days on the brink of livelihood collapse for a long time," adding, "Through the 'Seoul City Livelihood Protection Comprehensive Plan,' we will make every effort to ensure that support reaches those in urgent need. We will focus on the government's loss compensation blind spots and provide the fastest and most reliable support possible."

[Image source=Yonhap News]

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