"Loss Compensation Increased by 1.4 Trillion Won... 800,000 Won Support per Bus and Taxi Driver"

"Supplementary Budget Increased, but No Additional Issuance of National Bonds"
"Reflecting Adjustment of Supplementary Projects and Expected Unused Amounts in Main Budget"

[Image source=Yonhap News]

[Asia Economy Reporter Naju-seok] The People Power Party's Special Committee on Budget and Accounts announced that it has expanded support for small business owners affected by COVID-19 through the supplementary budget review. The required budget was secured by cutting low-effectiveness supplementary budget projects and expected unspent amounts from the main budget, with no additional government bond issuance. Compensation for small business owners' losses increased by 1.4 trillion won, and bus and taxi drivers will each receive 800,000 won in support.

On the 18th, the People Power Party's Budget Committee stated, "As a result of reviewing the supplementary budget, we cut 400 billion won from low-effectiveness cashback programs, 300 billion won from consumer coupon budgets and non-urgent short-term part-time job budgets, and 1.9 trillion won from expected unspent amounts in the main budget, reflecting a total of 2.6 trillion won to expand COVID-19 damage support and aid blind spots such as medical personnel struggling due to COVID-19."

First, the scale of loss support for small business owners increased from 3.9 trillion won to 5.3 trillion won, an increase of 1.4 trillion won. Specifically, loss compensation for small business owners was raised from 600 billion won to 1 trillion won. The maximum unit price for the Small Business Hope Recovery Fund increased from 9 million won to 20 million won, and the scope of businesses subject to operating restrictions was also expanded.

Considering fairness controversies, the emergency disaster relief fund was also increased by 64 billion won. As a result, an additional 3 million people, including single-person households and dual-income families, will receive support.

Bus and taxi workers, who were not originally covered in the supplementary budget, will receive 800,000 won per person in support for COVID-19 damage. The support targets include 35,000 charter bus drivers, 57,000 intercity and express bus drivers, and 80,000 taxi drivers. Additionally, the budget to identify and support children facing food insecurity due to COVID-19 was increased by 30 billion won.

Furthermore, related to COVID-19, a budget of 3 billion won was allocated to support the activities of testing personnel at screening clinics, 24 billion won for infection control activities of medical personnel, 300 billion won for treatment of confirmed cases, and 200 billion won for compensation of medical institutions' losses.

In addition, budgets related to recent heavy rain damage areas were also allocated.