Preparation for National Support Fund Payment to Be Completed by Mid-August... Payment Timing to Be Decided Based on Quarantine Situation

[Sejong=Asia Economy Reporter Kwon Haeyoung] The preparation process for the National Support Fund, which provides 250,000 KRW per person, will be completed around mid-next month. However, since the National Support Fund could increase face-to-face consumption and thus work against quarantine measures, the timing of the payment will be decided by examining the trend of COVID-19 confirmed cases at that time.

According to the Ministry of Economy and Finance on the 25th, the government is currently conducting a selection process to provide the National Support Fund to the bottom 80% + α of household income. This involves cross-checking health insurance premium payment information with resident registration information to identify eligible recipients, and the government expects to secure the full list of recipients by mid-August.

However, the government plans to finalize the timing of the support fund payment considering the COVID-19 quarantine situation. Since the National Support Fund has the characteristic of promoting face-to-face consumption, it could potentially have an effect contrary to quarantine efforts. There is an expectation inside and outside the government that discussions on payment will be concretized from the end of August, when the COVID-19 vaccination rate reaches about 50%.

The support fund can be received by choosing the preferred method among credit/check cards, prepaid cards, or local gift certificates. Applications for the support fund will be conducted simultaneously online and offline. Applicants can apply by accessing the card company’s website or by visiting the bank linked to the card to fill out an application form. If receiving via prepaid card or local gift certificates, applications are made through the local government website or the resident center of the applicant’s address.

For adults, the support fund is paid individually, and for minors, the head of the household receives the support fund on their behalf. Based on the case of last year’s nationwide support fund payment, the fund can be used starting two days after application.

The support fund is paid to the bottom 80% of household income, with preferential criteria applied to dual-income and single-person households. As a result, the support fund will be provided to about 88% of the population.

The Hope Recovery Fund, which is paid to small business owners affected by COVID-19, will begin sequential payments from August 17 following a business announcement in early August. There is no separate application procedure, and the fund will be paid as quickly as possible once account numbers and application intentions are confirmed through notification messages. The government plans to pay more than 90% of the fund before Chuseok. However, if additional verification is required due to objections, the payment process may be delayed.

The support fund will be differentiated according to the quarantine period and sales scale (80 million KRW, 200 million KRW, 400 million KRW), with payments ranging from a maximum of 20 million KRW to 500,000 KRW. Along with this, the government plans to hold a compensation committee meeting on October 8, when the Loss Compensation Act is enforced, to initiate the compensation procedure.