Incheon City Focuses on Supporting Severely Affected Groups and Industries by COVID-19... 570 Billion KRW Invested

50,000 to 150,000 KRW Support for Small Businesses under Gathering Restrictions
12.4 Billion KRW Support for Cultural Artists, Tourism Companies, and Daycare Centers
Incheon e-eum 10% Cashback Extended Until Year-End

Incheon Mayor Park Nam-chun is announcing the 'COVID-19, Incheon-style Livelihood Economy Support Measures' on the 20th. January 20, 2021 [Photo by Incheon City]

[Asia Economy Reporter Park Hyesook] Incheon City is stepping up to support small business owners and vulnerable groups struggling due to the prolonged COVID-19 pandemic by injecting an additional 570 billion KRW from its own budget alongside the government's third disaster relief fund.

First, the city will provide 45.4 billion KRW from its budget separately from the government support funds to small business owners classified under business suspension or restriction sectors who have suffered damages.

Businesses under continued suspension will receive 1.5 million KRW, those with eased suspension 1 million KRW, and restricted businesses 500,000 KRW each, with payments planned for a total of 75,000 small business owners.

Additionally, to strengthen the safety net for vulnerable groups and sectors overlooked by government support despite suffering damages, an extra 12.4 billion KRW in emergency disaster relief funds will be injected.

Cultural and artistic workers facing difficulties in their activities will receive 500,000 KRW, tourism companies 1 million KRW, and daycare centers will be supported with an average of 1.13 million KRW depending on their size.

For businesses benefiting from the 'Good Rent' reduction program, property tax will be cut by 50%, and livelihood stabilization funds of 500,000 KRW for corporate taxi drivers and 1 million KRW for charter bus drivers will be provided.

The youth target group will also be expanded from 320 to 640 people, with the Youth Dream Check Card providing 500,000 KRW per month for six months, totaling 3 million KRW.

Furthermore, to help small business owners recover sales, the local currency 'Incheon e-eum' card cashback benefit of 10% (for monthly payments under 500,000 KRW) will be extended until the end of this year. To this end, an additional 115.1 billion KRW will be invested into the cashback budget totaling 195 billion KRW, including 94 billion KRW in national funds.

Special financial support totaling 402.5 billion KRW will also be implemented, including 202.5 billion KRW for livelihood stabilization of small business owners and vulnerable groups, and 200 billion KRW for small and medium-sized enterprise operating funds.

This livelihood economic support targets a total of 1.02 million people, with amounts reaching 575.4 billion KRW, including 402.5 billion KRW in financial support and 172.9 billion KRW in direct support. The city plans to swiftly proceed with executable projects so that support payments can begin before the Lunar New Year.

Mayor Park Namchun stated, "It is important to provide support where it is most needed and in the most appropriate way under the current circumstances. Therefore, we have focused on supporting sectors and groups severely affected by COVID-19 and prepared additional city-level support measures in addition to the government's third disaster relief fund."