Sales Down 10%: '1 Million Won' Support for 80,000 Small Businesses... Seoul City’s Early Supplementary Budget of 1.1239 Trillion Won

Rapid Deployment for Livelihood Recovery and Quarantine Support
Early Supplementary Budget Before 2-Year Settlement... Submitted to City Council on the 17th
Focused Investment in Three Key Areas: Livelihood and Daily Life Recovery, Quarantine, Safety and Security... Early Allocation of Autonomous District Adjustment Grants

[Image source=Yonhap News]

[Asia Economy Reporter Lim Cheol-young] The Seoul Metropolitan Government has urgently prepared a supplementary budget of 1.1239 trillion KRW to recover the livelihood economy and prepare for the transition of the COVID-19 quarantine system. This early supplementary budget in March before the settlement is the first in two years since 2020.

According to Seoul City on the 17th, this supplementary budget amounts to 45.3688 trillion KRW, an increase of 2.5% (1.1239 trillion KRW) compared to the originally planned budget of 44.2449 trillion KRW this year. It was funded by last year's fiscal year net surplus (830.3 billion KRW), national treasury subsidies (8.9 billion KRW), non-tax revenue (100 million KRW), compensation income, and internal transactions (284.6 billion KRW).

Seoul City submitted this supplementary budget proposal to the Seoul Metropolitan Council on the same day and requested deliberation. It plans to execute it promptly as soon as it is approved by the council. Kim Ui-seung, Director of Planning and Coordination, explained, "Due to the continued difficulties in the livelihood economy caused by the spread of Omicron and the surge in quarantine demand due to the transition of the testing and treatment system and the rapid increase in home treatment patients, we have carried out an early supplementary budget."

This supplementary budget continues the main budget's policy direction and focuses investment on three major areas: livelihood and daily recovery (424.8 billion KRW), quarantine (206.1 billion KRW), and safety and security (113 billion KRW).

Seoul City will first provide 1 million KRW of ‘Daily Recovery Support Fund’ to about 80,000 small business owners excluded from government loss compensation. Small business owners who closed due to COVID-19 and successfully reopened will receive an ‘Employment Incentive’ of 1.5 million KRW. It will support improvements in the working environment of the root industry, which is the foundation of manufacturing, and start providing 50% support for ‘accounts receivable insurance premiums’ to small and medium-sized enterprises.

Additionally, 31.2 billion KRW will be invested to create green spaces for citizens exhausted by COVID-19 and to expand opportunities for cultural and leisure enjoyment in daily life. Attractive waterfront spaces will be created at Jeongneungcheon, Hongjecheon, and Dorimcheon streams, and book resting areas will be established in three parks including Yulhyeon Park. The basic plan for expanding the Seoul Dulle-gil trail will be initiated, and various free performances will be held at Nodeul Island and 25 district performance venues.

2.1 trillion KRW is allocated for emergency financial support for subways and city and village buses, which are facing financial difficulties due to accumulated transport deficits caused by a decrease in passengers from COVID-19 and prolonged fare freezes. This will help resolve accumulated debts and enable citizens to use public transportation more safely and conveniently.

[Image source=Yonhap News]

In the quarantine sector, 420.1 billion KRW has been allocated for the rapid execution of ‘Living Support Expenses’ jointly provided by the government and the city to support the basic living needs of the rapidly increasing number of hospitalized and isolated individuals. Seoul City will provide 5.3 million free ‘Self-Test Kits’ to about 900,000 infection-vulnerable groups including children in daycare centers, people with disabilities, and low-income groups, and has also budgeted to expand medical and support personnel at home care support counseling centers, which began operation in February at five municipal hospitals including Seoul Medical Center.

In the safety and security sector, Mayor Oh Se-hoon's pledge to start providing 700,000 KRW in transportation expenses per pregnant woman will be implemented, and 1,500 old security lights in areas densely populated by single-person households will be replaced with smart security lights to create a safer residential environment. To strengthen support for abused children, professional treatment will be provided through base medical institutions, and two temporary protection facilities (East and West) will newly assign special treatment experts.

Investment will also be made to diversify housing supply models for the stability of low-income housing. Seoul City will start a pilot project for ‘Win-Win Housing’ (long-term rental housing with private participation) combining private land and public resources, and support the creation of ‘Moa Town’ (12 locations) to improve the residential environment of old low-rise residential areas. Public support will also be strengthened for the rapid promotion of 20 candidate sites applying ‘Rapid Integrated Planning.’ In particular, safety management will be enhanced to prevent and respond to major disasters. Traffic safety facilities such as illegal parking enforcement cameras will be expanded in child protection zones, and safety management of road, river, and park facilities will be strengthened. Repairs and reinforcements will also be carried out for multi-use facilities vulnerable to fire, such as traditional markets.

Furthermore, to expand transportation infrastructure, investment will be made in urban railway construction, including the rapid relocation of Changdong Vehicle Depot in connection with the opening of Line 4 Jinjeop Line, and major arterial road construction such as Yulgok-ro and Geumho-ro will be completed without delay. To alleviate chronic parking shortages in densely populated multi-family and multi-unit housing areas, support will be provided for the construction of shared parking lots (354 spaces) in four districts including Dobong and Guro.

Seoul City plans to provide 94.1 billion KRW of general adjustment grants to autonomous districts early through this supplementary budget. This is intended to support the finances of autonomous districts struggling to prepare matching funds due to excessive national treasury subsidies from the government and to enable autonomous districts to secure resources for livelihood measures at the district level.

Kim Ui-seung, Director of Planning and Coordination, said, "Considering the difficulties in the livelihood economy caused by COVID-19 and the urgency of support, we have exceptionally carried out an early supplementary budget before the settlement, focusing on the three major areas of livelihood and daily recovery, quarantine, and safety and security. We will promptly execute the supplementary budget as soon as it is approved by the Metropolitan Council to help overcome the livelihood and quarantine crisis."

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