Gyeonggi-do to Pay 230,000 Won to Vulnerable Workers Tested for COVID-19

Small Business Owners to Receive Up to 1 Million Won in Support if Unable to Operate Due to Assembly Ban Orders

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province and its cities and counties will provide income loss compensation of 230,000 KRW per person to vulnerable workers such as delivery drivers who have suffered damage due to COVID-19. In addition, small business owners who suffer losses due to business suspension orders will receive up to 1,000,000 KRW in support.

On the 4th, Gyeonggi Province Governor Lee Jae-myung and Chairman Ahn Byung-yong of the Gyeonggi Province Mayors and County Governors Association held a press conference and announced that delivery drivers and other workers who cannot work due to COVID-19 diagnostic tests will receive 230,000 KRW per person as income loss compensation. Small business owners who suffer business losses due to business suspension administrative orders will be supported with special management funds and loan guarantees, respectively.

The funding will be shared equally, 50% by the province and 50% by the cities and counties.

The province and the association will first provide 'sick leave income loss compensation' to vulnerable workers who undergo early diagnostic testing due to suspected COVID-19 symptoms. Eligible recipients include part-time workers working less than 40 hours per week, daily workers, delivery drivers, substitute drivers, and special employment-type workers such as private tutors.

They will receive a total of 690,000 KRW in sick leave income loss compensation, 230,000 KRW per person for three days including the test day and the day of notification of the test result, paid in local currency.

Suspected individuals who receive diagnostic tests at public health centers or screening clinics can apply for compensation after the test, which will be paid after review. However, this is conditional on self-isolation until the test results are released.

Additionally, the province and the association will support special management funds and loan guarantees for small business owners suffering from prolonged business suspension orders.

Special management funds will be provided to small business owners designated under the business suspension order, with 500,000 KRW for two weeks and 1,000,000 KRW for four weeks of suspension, respectively.

Among small business owners subject to business suspension orders who need management funds but face loan restrictions under current regulations, loan guarantees will be provided.

Until now, small businesses classified under entertainment industries were unable to receive guarantees and loans from the Korea Credit Guarantee Fund Central Association, Gyeonggi Credit Guarantee Foundation, or general financial institutions.

The province and the association are negotiating with Gyeonggi Credit Guarantee Foundation and Gyeonggi Province treasury banks such as NongHyup and Shinhan Bank to enable these industries to receive loans.

Earlier, on the 29th of last month, the province requested the Ministry of SMEs and Startups and the Financial Services Commission to temporarily lift restrictions on guarantees and loans for entertainment businesses.

Furthermore, the province and the association are considering lifting business suspension orders on the condition of compliance with quarantine rules.

If businesses that meet the conditions proposed by the province regarding quarantine rules apply for lifting the business suspension order, a separate review committee will be established to decide whether to lift the order after deliberation.

Chairman Ahn of the Mayors and County Governors Association said, "The cluster infection at the Bucheon Coupang logistics center clearly showed the poor working conditions of non-regular workers, and as the business suspension administrative orders have been prolonged, small business owners who are effectively in a state of business suspension are facing economic difficulties. We will carefully identify and improve this crisis that attacks the most vulnerable parts of our society first."