Outline of the 4th Supplementary Budget... Up to 2 Million Won Paid to Special-Type Workers with Sharp Income Decline

Discussion on the '4th Supplementary Budget' between the Party and Government on the 6th

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki and Financial Services Commission Chairman Eun Sung-soo are announcing the 'Korean New Deal Financial Support Plan' at the government Seoul office briefing room on the 3rd. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Jang Sehee] As the government considers drafting the 4th supplementary budget (supplementary budget) of around 8 to 9 trillion won, it is expected to provide support funds of up to approximately 2 million won to vulnerable employment groups such as workers in special employment types and freelancers.

According to the Democratic Party of Korea and the government, the party and government will coordinate the 4th supplementary budget containing these details on the 6th at the Prime Minister's official residence in Seoul. However, the detailed measures are likely to be announced through the emergency economic meeting chaired by President Moon Jae-in.

The government plans to focus the supplementary budget resources on supporting vulnerable employment groups, self-employed, and small business owners who have suffered income and sales declines due to the recent second wave of COVID-19. Vulnerable employment groups include door-to-door salespeople, private tutors, and academy bus drivers.

This second round of support funds will be distributed selectively. Unpaid leave workers, unemployed persons, basic livelihood security recipients, and lower-income groups will also be included as recipients of the support funds. The support amount is reported to increase to around 2 million won, which is double the upper limit of the first disaster relief fund (1 million won for families of four or more). The intention is to expand the scale of payments by selecting those in need.

For self-employed and small business owners, some industries among the 12 high-risk facilities subject to gathering bans due to the recent escalation of social distancing levels will be prioritized for support. The 12 high-risk facilities include emotional pubs, hunting pubs, karaoke rooms, and PC rooms.

Meanwhile, plans to provide additional tax benefits along with cash support to self-employed and small business owners are also under consideration. The small business financial support program, which currently has about 12 trillion won remaining, is considering expanding the target or increasing the limit.