Ministry of Oceans and Fisheries, 'Comprehensive Support Measures for Fisheries Sector in Response to COVID-19'
[Sejong=Asia Economy Reporter Joo Sang-don] The government has decided to provide support worth 135.4 billion KRW for companies experiencing export declines due to the impact of the novel coronavirus infection (COVID-19).
The Ministry of Oceans and Fisheries announced on the 9th that it has prepared and will implement a "Comprehensive Support Plan for the Fisheries Sector in Response to COVID-19" to minimize the impact on the fisheries sector caused by the spread of COVID-19.
First, the Ministry of Oceans and Fisheries will promptly provide export support funds totaling 135.4 billion KRW, including emergency management funds (3 billion KRW) to alleviate financial difficulties of companies struggling due to decreased exports to China and other countries, and general management funds (132.4 billion KRW) for all export companies. In addition, through 10 Fisheries Trade Support Centers operating in seven countries including China, they will actively support various customs clearance guidance and legal advice, and quickly resolve trade-related difficulties such as acquiring eco-friendly certifications (ASC, etc.) and supporting sample customs clearance fees.
Promotion and marketing support for Korean seafood products will also be promoted mainly through overseas online channels. Promotional events linked to major countries' online platforms such as China's Taobao will be conducted immediately, and home shopping broadcast sales will be supported in countries like Vietnam and Malaysia.
To revitalize domestic seafood consumption and transactions, projects that can stimulate domestic consumption will be promoted, and support for market development for local fisheries companies will also be undertaken.
Indirect advertising (PPL) on public broadcasting and SNS for farmed seafood such as rockfish and flatfish will be supported, and costs for small-scale fishermen to enter public home shopping, as well as consulting related to entering e-commerce, will be actively supported. Furthermore, through collaboration with online and offline distribution channels, monthly seafood promotions will be conducted, and the "Eosik Baekse Campaign" will be expanded.
Through the Marine Fisheries Startup Investment Support Centers (6 locations) and the Fishing Village Specialized Support Centers (10 locations), close support for market development through online channels for local fisheries companies and fishing village communities will be provided. The "Wholesale Market Cam Market" (3 locations), where consumers can directly check seafood at local wholesale markets via video and order online immediately, will also be established early to promote direct seafood transactions.
To stabilize fishermen's management, policy financing in the fisheries sector totaling 3.48 trillion KRW will be rapidly supplied up to 80% (2.8 trillion KRW) in the first half of the year. In particular, 20 billion KRW in emergency management stabilization funds will be provided for fishermen who suffered sales declines due to COVID-19, and 10 billion KRW in management rehabilitation funds will be provided for fishermen in management crises.
Additionally, the Ministry of Oceans and Fisheries, after consultation with financial authorities, will reduce interest rates on major policy funds supporting fishermen affected by COVID-19 by 0.5 percentage points for one year to ease their interest burden. In line with the recent "Good Rent" movement, local governments will actively support rent reductions (from 5% to a minimum of 1% of property value) for fishermen (small business owners) residing in fisheries wholesale markets (18 locations) and seafood food hub complexes (13 locations) owned by local governments.
Along with this, the Ministry of Oceans and Fisheries will ensure the early execution of the fisheries sector budget, expand social overhead capital (SOC) and investments, and introduce a public interest-type direct payment system to maintain growth momentum in the fisheries sector. To maximize the effect of expansionary fiscal policy, more than 62% of the fisheries and fishing village sector budget (2.4671 trillion KRW) will be executed early within the first half of 2020. In particular, the Fishing Village New Deal 300 project and inland fishing village regeneration pilot projects will be accelerated, and smart aquaculture industry development through Aqua Farm 4.0 and smart aquaculture clusters, formation and operation of fisheries venture startup funds, and food industry development through seafood food clusters and hub complexes will be steadily promoted to expand fisheries sector SOC and investments. Furthermore, a direct payment law to enhance the public interest function of fisheries and fishing villages will be prepared early to introduce a public interest-type direct payment system in the fisheries sector that supports fishermen engaged in public interest activities such as fisheries resource protection and eco-friendly seafood production.
Minister Moon Sung-hyuk of the Ministry of Oceans and Fisheries said, "Since fisheries is a core industry supporting food and our economy, we will actively resolve difficulties in the related industry through this comprehensive support plan and continue to sustain economic vitality in the fisheries sector. We will also listen to industry difficulties, consult with related ministries, and provide full support to minimize COVID-19 damages to fisheries, and prepare additional measures if necessary."
Meanwhile, on the same day, the Ministry of Oceans and Fisheries plans to hold a meeting at the Government Complex Sejong, chaired by Minister Moon, with fisheries industry and organizations, related associations, and affiliated institutions to explain the newly established support plan and listen to additional suggestions.
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