10.7565 Trillion Won in 'COVID-19 Coexistence National Support Fund' Paid to 43.02 Million People

Appeals Totaling 461,000 Cases, Additional 76.9 Billion KRW Paid to 308,000 People Through Approvals and Others

[Asia Economy Reporter Lim Cheol-young] The Ministry of the Interior and Safety announced on the 7th that, after closing the application and objection processing for the COVID-19 coexistence national support fund, it paid 10.7565 trillion won to approximately 43.026 million citizens. This corresponds to 86.0% of the total number of households.

According to the Ministry of the Interior and Safety, among the database-registered eligible recipients initially scheduled to receive the payment, support funds were paid to about 42.718 million people, accounting for 98.7%. By payment method, the largest group of recipients, 72.1%, received the support funds via 'credit/debit cards,' followed by 'local love gift certificates' at 17.5%, and 'prepaid cards' at 10.4%.

Additionally, beyond the database-registered eligible recipients, an extra 30,800 people received 76.9 billion won through acceptance of objections and other means. The number of objections received was 461,000, with reasons including health insurance premium adjustments at 190,000 cases (41.2%), household composition changes at 167,000 cases (36.3%), and returnees from overseas stays at 28,000 cases (6.0%).

Analyzing the usage of credit/debit cards and local love gift certificates (card type and mobile type) for about two months after the start of the national support fund payments, it was found that 90.7%, or 8.3656 trillion won, of the 9.2197 trillion won paid was used.

The Ministry of the Interior and Safety explained, "During the same period, the total amount of national support funds paid was 10.6795 trillion won. Assuming that 90.7% was also used for paper-type local love gift certificates and others, it is estimated that a total of 9.6906 trillion won was used in the local economy. Similar to the first emergency disaster relief fund paid in May last year, this year’s national support fund was rapidly consumed by about 90% within approximately two months after payment, indicating a strong short-term consumption stimulus effect."

By industry, the highest usage was analyzed as follows: marts and grocery stores at 28.6% (2.3897 trillion won), restaurants at 22.4% (1.8776 trillion won), hospitals and pharmacies at 9.0% (756 billion won), and convenience stores at 8.6% (719.8 billion won).

Meanwhile, this year’s national support fund showed a significantly higher usage rate in small and medium-sized franchise stores with annual sales of 3 billion won or less, contributing to the recovery of damages for local small business owners. Analyzing the usage amount of the national support fund paid via credit/debit cards (6.8761 trillion won) by franchise store sales size, 80.5% (5.5364 trillion won) was used in small and medium-sized franchise stores with annual sales of 3 billion won or less.

Minister Jeon Hae-cheol said, “The government and local governments have made their best efforts to establish a payment system through public-private cooperation, introduce guidance services via the national secretary, and provide visiting applications so that citizens can receive and use the support funds quickly and conveniently.” He added, “The government will continue to actively support revitalizing neighborhood markets and the local economy to help the entire nation overcome the COVID-19 crisis together.”