14th COVID-19 Response Economic Ministers' Meeting and 4th Crisis Management Meeting
30% Reduction in Traffic Inducement Charges for Department Stores
Additional Measures Suggested as Employment Market Becomes Unstable
Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is delivering opening remarks while presiding over the "14th Economic Ministers' Meeting on COVID-19 Response and 4th Crisis Management Meeting" held on the 9th at the Government Seoul Office in Gwanghwamun, Seoul.
[Sejong=Asia Economy Reporters Kim Hyunjung, Kim Bokyung] In response to the spread of the novel coronavirus infection (COVID-19), the government will extend the payment period for family care cost support from a maximum of 5 days to 10 days. The support amount will also increase from up to 250,000 KRW per person to 500,000 KRW (1,000,000 KRW for couples combined). For department stores and other businesses whose sales have sharply declined due to COVID-19, the transportation inducement charge will be reduced by 30%.
Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, announced this on the morning of the 9th at the 14th Economic Ministers' Meeting on COVID-19 Response and the 4th Crisis Management Meeting held at the Government Seoul Office.
The family care cost support program provides subsidies to workers who take leave due to illness, accidents, or child-rearing reasons. Originally, unpaid leave could be taken for up to 10 days, but to alleviate workers' economic burdens, the Ministry of Employment and Labor began accepting support applications last month. Workers raising children aged 8 or younger (2nd grade in elementary school) receive 50,000 KRW per day. According to government policy, the total support amount available can increase up to 1,000,000 KRW for couples combined. Additionally, workers with children entering 3rd grade in elementary school this year can receive support for leave taken during the online school opening period. Workers who have already used all 10 days of family care leave can also apply retroactively.
Application documents and procedures will also be simplified. If a worker has used 10 days of family care leave but has only applied for 5 days and has not yet been paid, they only need to supplement the employer's confirmation form with the number of leave days used. The project budget will be 53 billion KRW, combining the previously allocated contingency fund of 21.3 billion KRW with an additional 31.6 billion KRW, and benefits are expected to reach a total of 120,000 households.
Along with this, the government announced additional support measures by industry. The transportation inducement charge paid by department stores, marts, tourism and cultural facilities, and electric facilities will be reduced by 30% for this year's assessed amount (approximately 120 billion KRW reduction based on 2019). Road and river occupancy fees paid by private businesses will be temporarily reduced by 25%. The apron usage fee paid by airline ground handling companies to the airport corporation for storing work equipment at airports will be increased from the existing 20% discount to 100%.
For the sports industry sector hit by social distancing campaigns, special operating funds loans will be increased to 50 billion KRW, and general loans will offer principal repayment deferrals and one-year maturity extensions. Loans for stockpiling funds for agricultural and fishery businesses will be expanded to 20 billion KRW, and rental fees for the Incheon export logistics center site for seafood export support will be reduced by 20% for six months.
Deputy Prime Minister Hong also hinted at additional employment support measures. He said, "Going forward, there is a high possibility of employment adjustments centered on temporary and daily workers with unstable employment status and self-employed and small business owners experiencing sharp sales declines," adding, "Maintaining employment by companies and workers keeping their jobs is the most important foundation for stabilizing people's livelihoods, which is directly linked to the national economy and citizens' livelihoods, so it is very important to prepare sufficient and meticulous preemptive measures." He emphasized, "Accordingly, we will focus on four measures and directions: employment retention measures for small business owners, small and medium-sized enterprises, and large corporations; unemployment measures for workers displaced from jobs; emergency and new job creation measures in the public and private sectors; and livelihood stabilization measures for workers and unemployed persons facing greater difficulties, and we will devise additional countermeasures to respond to employment shocks."
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