'250,000 Won Per Person' National Support Fund to Be Received Around the End of Next Month... Health Insurance Premium for 4-Person Household 308,000 Won

2nd Supplementary Budget Pan-Government TF Announces Implementation Plan for 'COVID-19 Damage Support 3-Package'

[Sejong=Asia Economy Reporter Son Seon-hee] The COVID-19 coexistence national support fund, which provides 250,000 KRW per person to 88% of the entire population, will be distributed around the end of next month. For small business owners struggling due to the fourth wave of COVID-19, up to 20 million KRW will be provided starting from the 17th of next month.

On the 26th, the government held the 3rd meeting of the second supplementary budget (추경) whole-of-government task force (TF), composed of related ministries including the Ministry of Economy and Finance and the Ministry of the Interior and Safety, chaired by Ando-geol, the 2nd Vice Minister of the Ministry of Economy and Finance, and announced the implementation plan for the ‘COVID-19 Damage Support 3-Pack’.

According to the implementation plan, the national support fund can be received if the combined health insurance premium amount for June falls within the bottom 80% (approximately 180% of the median income standard). For a four-person household, this corresponds to a combined health insurance premium of 308,300 KRW (based on workplace subscribers). Additionally, for single-person households, an annual income of 50 million KRW or less applies, and for dual-income households, a special exception is applied by adding one household member to the health insurance premium standard.

However, even if these criteria are met, households whose total property tax base exceeded 900 million KRW last year or whose total financial income (including interest and dividends) exceeded 20 million KRW are not eligible for the support fund. For jointly owned property by spouses, the 900 million KRW tax base standard applies to the combined amount.

Due to the special exceptions for single-person and dual-income households, the final support target is estimated to increase by 1.78 million households from the original government plan to 20.34 million households, approximately 44.72 million people. With the expansion of the payment target, the required budget was finalized at 11 trillion KRW, an increase of 600 billion KRW from the previous 10.4 trillion KRW.

Although the ruling party and government finalized the scale and target of the support fund after numerous debates, fairness issues are expected to persist. Eligibility may differ within the same income bracket, and those near the cutoff line may miss out on support by as little as 10,000 KRW. It is neither a universal payment to all citizens nor a robust support for vulnerable groups, leaving it in an ambiguous state.

Alongside this, the government will promptly announce the project for the Hope Recovery Fund, which provides up to 20 million KRW (for business closures and sales over 400 million KRW) to small business owners affected by COVID-19 quarantine measures, and payments will begin from the 17th of next month.