Emergency Management Funds and Employment Retention Support for Small Business Owners
10 Billion Won for Stabilizing Arts and Tourism Industries... 65.5 Billion Won for Strengthening Infectious Disease Response
Amid economic instability caused by the novel coronavirus outbreak, citizens are waiting to apply for unemployment benefits on the 19th at the Seoul Western Employment and Labor Office in Mapo-gu, Seoul. Photo by Kang Jin-hyung aymsdream@
[Asia Economy Reporter Jo In-kyung] The Seoul Metropolitan Government has urgently prepared a 'COVID-19 supplementary budget' totaling 860 billion KRW. The goal is to practically alleviate the suffering of citizens directly affected by the novel coronavirus infection (COVID-19), focusing on the urgency, effectiveness, and perceptibility of support. This early supplementary budget in March by Seoul is the first since the response to the 2009 global financial crisis.
According to Seoul on the 19th, the disaster emergency living expense support in this supplementary budget reflects a total of 327.1 billion KRW as announced by Mayor Park Won-soon the previous day. It utilizes 127.1 billion KRW from the disaster management fund (relief account) accumulated for disaster preparedness and allocates 200 billion KRW as supplementary budget.
The supplementary budget also includes 171.2 billion KRW for low-income consumer coupons supporting about 230,000 basic livelihood security households and 70,000 legally defined near-poverty households, 166.3 billion KRW for childcare coupons for child allowance recipients, and an additional 24.7 billion KRW for senior citizen jobs and childcare services.
For small and medium-sized enterprises and small business owners whose sales have sharply declined due to reduced consumption, a three-pronged support package will be activated.
The existing 500 billion KRW emergency management stabilization fund will be increased by 300 billion KRW to a total of 800 billion KRW, and a total of 20.1 billion KRW will be provided to pay employment retention subsidies of up to 500,000 KRW for unpaid leave workers in micro-businesses with fewer than five employees.
Additionally, 1 billion KRW has been allocated to support rent and labor costs (up to 390,000 KRW per day) incurred during the closure period (5 days) for small business owners and franchise stores (500 locations) that closed due to confirmed patient visits.
Seoul will also invest 5 billion KRW in producing online performance content to encourage citizens' 'social distancing' while supporting artists and staff who lost jobs due to performance cancellations or postponements.
Fifty billion KRW will be provided to small travel agencies in recession to help them plan and develop products in preparation for the post-COVID-19 period.
Emphasizing early termination of COVID-19 and strengthening infectious disease response systems, 12 negative pressure special ambulances will be added to district health centers, and 13 million masks will be secured and distributed to medical institutions and high-risk occupational groups prone to cluster infections.
Seoul submitted this 2020 first supplementary budget proposal to the city council today and requested deliberation. Once the budget is approved by the city council, it plans to execute it swiftly and maximize spending within the first half of the year.
Mayor Park Won-soon of Seoul stated, "We will enhance effectiveness and perceptibility through direct and immediate support for citizens affected by COVID-19," emphasizing, "In particular, the disaster emergency living expense will be a practical measure that tightly covers disaster blind spots where people suddenly face economic crises but have not received government supplementary budgets or existing welfare benefits."
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