[Exclusive] 3rd Disaster Relief Fund '5 Trillion+α'... Up to 1 Million Won for Special Employment and Freelancers

100 Million KRW Payment to Employment-Vulnerable Groups Such as Specially Employed and Freelancers
Differentiated Support of 1 to 3 Million KRW for Small Business Owners in January

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The ruling party, government, and Blue House have decided to increase the scale of the third disaster relief fund to over 5 trillion won. The government plans to finance this through 3 trillion won reflected in next year’s budget, 500 billion won carried over from this year’s small business management stabilization funds, and some contingency funds and reserves. The third disaster relief payments will begin in early January next year.

On the 28th, according to the Democratic Party of Korea and the government, the ruling party, government, and Blue House have settled on a scale of "5 trillion won plus alpha (α)" for the third disaster relief fund and are coordinating specific plans. The estimated number of beneficiaries for the third disaster relief fund is 5.8 million people.

A senior government official stated, "The third disaster relief fund is expected to exceed at least 5 trillion won," adding, "There are many groups to support, including small business owners, employment-vulnerable groups, and medical institutions that provided treatment beds, so the scale is expected to grow even larger."

The ruling party, government, and Blue House also decided to provide a one-time emergency employment stabilization subsidy of 1 million won to vulnerable employment groups such as special-type workers (특고, teukgo) including door-to-door salespeople and substitute drivers, as well as freelancers. However, those who received the emergency employment stabilization subsidy during the second disaster relief fund will receive only half, 500,000 won, additionally.

Small business owners and self-employed individuals will receive 1 million won in business damage support funds. Additionally, businesses subject to gathering restrictions will receive an extra 1 million won, and businesses subject to gathering bans will receive an additional 2 million won. The tax credit rate for "Good Landlords" will also be raised from the current 50% to 70%. Furthermore, small business owners will be allowed to defer payment of electricity bills, employment and industrial accident insurance premiums, and national pension insurance premiums for three months from January to March next year.

To alleviate the burden of rent for small business owners, low-interest loan funds will also be provided. Depending on the scale of the low-interest loan funds, the total amount of the disaster relief fund is expected to increase to nearly 5 to 6 trillion won.

Meanwhile, to maximize effectiveness with limited resources, the government has decided not to provide cash support to youth and childcare households. The government plans to accelerate the execution of the youth digital job project budget (467.6 billion won) reflected in next year’s budget within the first quarter. In September, the government provided a one-time payment of 500,000 won to unemployed youth. For childcare households, instead of cash payments, services such as expanding shared childcare centers into care facilities are being strongly considered.