The First Ever 'January Supplementary Budget'... Hong Nam-ki "Submitting a 14 Trillion Won Supplementary Budget Proposal by the End of This Month" (Update)

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Son Sun-hee] The government has decided to prepare a supplementary budget (supplementary budget) worth a total of 14 trillion won to support small business owners, self-employed individuals, and quarantine efforts. This is the first-ever 'January supplementary budget' as of the date of submission to the National Assembly.

On the 14th, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, held a joint government briefing at the Government Seoul Office and stated, "Through a 'one-point supplementary budget' limited to support for small business owners and quarantine, we will provide additional quarantine support funds to the self-employed and small business owners," adding, "We are looking at about 14 trillion won."

The government decided to extend social distancing measures for a total of three weeks, including the Lunar New Year holiday. In this regard, Deputy Prime Minister Hong said, "To alleviate the burden of fixed costs such as rent and labor costs and to maintain livelihoods, we will provide an additional 3 million won each to small business owners and self-employed individuals whose sales have decreased," adding, "The scale will reach about 10 trillion won." He also added, "We will additionally secure 1.9 trillion won for loss compensation for businesses subject to closure or restrictions in this supplementary budget."

The background for preparing this supplementary budget appears to be strongly influenced by the extension of quarantine measures as well as the government's 'tax revenue estimation error.' As a result of an error of about 10 trillion won more than the initially announced excess tax revenue amount (19 trillion won), the ruling party's demand for preparing a supplementary budget was ultimately accepted.

Deputy Prime Minister Hong said, "I humbly apologize for the excessive excess tax revenue," but added, "Since excess tax revenue can be utilized after the settlement procedure, considering this, we will first provide emergency support through deficit bonds."

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