Cheongwadae-Government to Hold 4th Emergency Economic Meeting This Week... Focus on Tangible Support Measures for Vulnerable Groups

Urgent Disaster Relief Fund Implementation Accelerates... One-Point Supplementary Budget Bill May Be Submitted as Early as This Week
Expected Appeal for Public Cooperation Following Extension of Social Distancing

[Image source=Yonhap News]

[Asia Economy Reporter Moon Chaeseok] The Blue House and the government are expected to discuss more concrete measures this week at the 4th Emergency Economic Meeting to help vulnerable groups such as self-employed individuals and small business owners who have been affected by the novel coronavirus infection (COVID-19) feel the impact of support.

Since a significant portion of the economic revitalization measures were announced during the three Emergency Economic Meetings presided over by President Moon Jae-in until last week, it is interpreted that the focus now is on ensuring that the beneficiaries actually experience the government's support measures.

The Blue House stated, "The broad framework of the measures, such as providing an emergency disaster relief fund of 1 million won for a family of four in the bottom 70% income bracket, has almost been finalized. Now, it is important to make sure the effects of the measures are felt and that there are no gaps."

Earlier, the government announced a 50 trillion won 'Livelihood and Financial Stability Package Program' at the first Emergency Economic Meeting held on the 19th of last month. This was to support groups relatively vulnerable to the economic downturn.

At that meeting, President Moon said, "We will decide on extraordinary emergency financial measures to prevent the bankruptcy risk of small and medium-sized enterprises, small business owners, and self-employed individuals who form the foundation of the ordinary economy, and to resolve financial instability."

The government, the Bank of Korea, and all financial sectors participated to provide emergency management funds to small and medium-sized enterprises, small business owners, and self-employed individuals, and also lowered loan interest rates to 1.5% to supply sufficient liquidity.

However, confusion arose as many small business owners gathered at the direct loan sites managed by the Ministry of SMEs and Startups and the Small Enterprise and Market Service, causing bottlenecks and protests.

Therefore, the 4th meeting is expected to focus on specific measures that allow vulnerable groups to immediately benefit and ways to implement them swiftly.

Additionally, the issue of reducing those who do not fall under the beneficiaries of the various support measures announced in the previous three meetings may also be raised.

At the 3rd meeting on the 30th of last month, President Moon said, "There are constantly blind spots. Even among special employment workers, there are new types of workers such as platform workers beyond the traditional categories."

He then urged the Ministry of Employment and Labor, "Since these people should be included as new policy targets, please make additional efforts to identify blind spots to cover them as much as possible."

The Blue House and the government are expected to prepare for cooperation with the National Assembly to reduce blind spots in emergency disaster relief funds and other support.

For the emergency disaster relief funds to be disbursed as scheduled next month, the 2nd supplementary budget bill must be swiftly reviewed.

To this end, it is anticipated that efforts to restructure budget expenditures will be accelerated. The government is reported to submit a 'one-point' supplementary budget bill worth 7.1 trillion won to the National Assembly as early as late this week to provide the emergency disaster relief funds.

It is also expected that President Moon will put effort into urging the public to cooperate with the high-intensity social distancing measures. The government has decided to continue the high-intensity social distancing initially scheduled until today.

President Moon stated on social media the day before, "Now is a critical moment determining whether COVID-19 will enter a stable phase or spread again. During this period, I earnestly ask everyone to participate in social distancing through online worship or home worship."

While urging the public to refrain from outdoor activities for spring outings as part of social distancing cooperation, President Moon is also expected to emphasize the necessity of online worship to the Christian community ahead of Easter on the 12th.