Special Workers and Freelancers to Receive 500,000 Won Each Without Screening
Applications for Small Business Owners' New Hope Fund Also Begin Today
[Sejong=Asia Economy Reporter Kim Hyunjung] Multiple support funds related to the government’s 4th supplementary budget for responding to the novel coronavirus infection (COVID-19) will begin to be disbursed starting from the 24th. The government plans to provide as many support funds as possible before Chuseok to stabilize people’s livelihoods.
First, an emergency employment stabilization package worth 1.5 trillion won will be released into the market. 500,000 special-type workers (special employment types) and freelancers who already proved income reduction and received the first support fund (in June) will receive 500,000 won each without screening. The Ministry of Employment and Labor sent notification text messages to the recipients on the 18th and is currently accepting applications. They plan to complete screening before Chuseok and disburse the funds before Chuseok, and for special-type workers and freelancers who did not receive the first support fund, payments will be made until the end of November.
For the second support fund, 200,000 applicants will be selected to receive 1.5 million won. Applications for the second support fund can be submitted through the support fund website from the 12th to the 23rd of next month, and offline applications through employment centers will be accepted from the 19th to the 23rd of the same month. Applicants must submit documents proving labor provision, such as a certificate of labor provision issued by the employer, income amount certificate issued by the National Tax Service, last year’s bank deposit records, and statements of allowances and fees.
From the 4th supplementary budget (7.8 trillion won), 3.9 trillion won allocated for urgent damage support for small business owners and SMEs will also accept applications from the 24th and begin payments from the 25th. Recipients scheduled to receive payments before Chuseok started receiving notification text messages from the afternoon of the 23rd, and small business owners who apply according to the guidance will receive Saehopeum funds of 1 to 2 million won in their own name accounts.
Eligible recipients can apply through a dedicated online site. No separate supporting documents are required; only additional information such as business registration number and account number need to be entered. However, for identity verification, small business owners must prepare a mobile phone registered in their name or a public certificate.
On the 24th and 25th, an odd-even system will be operated: on the 24th, small business owners whose business registration number ends with an even digit can apply, and on the 25th, those whose number ends with an odd digit can apply. From the 26th onward, when the congestion is somewhat alleviated, applications can be submitted regardless of the number. To receive payments before the Chuseok holiday, applications must be submitted by 5 p.m. on the 28th, and applications are also accepted on the weekend of the 26th and 27th.
The Youth Special Job-Seeking Support Fund will also accept applications starting on the 24th. Eligible are youths aged 18 to 34 who have not yet found employment due to the COVID-19 crisis among participants of the Employment Success Package (Chwiseongpae) and Youth Job-Seeking Activity Support Fund. Employment status is determined by the employment insurance database (DB), and business registration by the National Tax Service is used to determine entrepreneurship; even if registered, support is available if the business is confirmed to be temporarily closed or shut down. Priority is applied: first priority is low-income vulnerable youth who did not receive the job-seeking promotion allowance under Chwiseongpae. Second priority includes last year’s Chwiseongpae Type 2 participants, Youth Job-Seeking Activity Support Fund participants, and Chwiseongpae Type 1 participants receiving job-seeking promotion allowance. Third priority includes youths who completed or are still participating in Chwiseongpae Type 2 this year. Applications can be submitted online at the Youth Center, and documents such as consent forms for personal information collection and a copy of a bankbook for account verification must be prepared. The Ministry of Employment and Labor has already sent related notification messages and will accept applications according to priority. First and second priority applications are accepted from the 24th to the 25th, and third priority from the 12th to the 24th of next month. It is expected that support funds for first and second priority youths will be paid before Chuseok.
The Prime Minister’s Office stated, “The government has immediately started the supplementary budget execution procedures and plans to do its best to deliver the funds to citizens who are suffering greatly from COVID-19 before Chuseok through active administrative efforts such as easing payment criteria, simplifying administrative procedures, and establishing an efficient delivery system.”
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