Government to Focus Support on Industries Hit by COVID-19 Impact... Aviation Support Plan to Be Announced Soon

Emergency Economic Situation Review Meeting Held

Prime Minister Chung Sye-kyun is entering the meeting room to attend the 'Emergency Economic Situation Review Meeting' held at the Government Seoul Office in Jongno-gu, Seoul on the 15th. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Joo Sang-don] The government has decided to focus support on industries struggling due to the impact of the novel coronavirus disease (COVID-19), such as the tourism and aviation sectors.

On the 15th, the government held an emergency economic situation inspection meeting at the Government Seoul Office, chaired by Prime Minister Chung Sye-kyun, to discuss livelihood stabilization measures centered on this issue.

The meeting was attended by Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki, Deputy Prime Minister and Minister of Education Yoo Eun-hye, and ministers from the Ministry of Science and ICT, Ministry of the Interior and Safety, Ministry of Culture, Sports and Tourism, Ministry of Agriculture, Food and Rural Affairs, Ministry of Trade, Industry and Energy, Ministry of Employment and Labor, Ministry of Land, Infrastructure and Transport, and Ministry of SMEs and Startups.

First, the government decided to swiftly implement a policy package worth 32 trillion won by adding a supplementary budget (supplementary budget) to the already implemented emergency support measures for industries and sectors such as small and medium-sized enterprises, small business owners, and tourism companies, as well as livelihood economic stabilization measures including quarantine contingency funds and rent support for small business owners. The government plans to fully support the prompt passage of the supplementary budget and make thorough preparations for rapid execution immediately upon its approval.

In particular, support will be concentrated on sectors with large-scale damage. The government will review additional financial, tax, and fiscal support measures such as special loans for the tourism industry and expanded repayment deferrals, and actively promote domestic and inbound tourism to quickly recover travel demand once COVID-19 subsides.

Additionally, support measures for the aviation industry will be prepared and announced soon. Proactive preparations will be made for additional measures such as expanding employment retention subsidies focused on specially designated employment support industries, employment stabilization support, and revitalization of domestic demand.

The meeting also discussed ways to respond to uncertainties in the financial market. The government plans to closely monitor the financial market, review market stabilization measures, and focus on risk management by strengthening cooperation with the Group of Twenty (G20), the International Monetary Fund (IMF), and enhancing communication with credit rating agencies and overseas investors.