Small Business Owners to Receive 3 Million Won Each... '14 Trillion Won' Supplementary Budget Likely to Be Distributed Before Presidential Election

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance (right), and Kwon Deok-cheol, Minister of Health and Welfare (center), are greeting after concluding a joint government briefing on the extension of quarantine measures and support for small business owners at the Government Seoul Office in Jongno-gu, Seoul, on the 14th. Photo by Kim Hyun-min kimhyun81@

[Sejong=Asia Economy Reporter Son Seon-hee] The government has decided to prepare a supplementary budget (supplementary budget) and provide an additional 3 million won in quarantine support funds to small business owners and self-employed individuals whose sales have decreased due to the extension of social distancing. Considering the schedule for preparing the supplementary budget and the National Assembly review, the actual payment is expected to be just before the presidential election day (March 9).

According to the Ministry of Economy and Finance, this supplementary budget, totaling 14 trillion won, is expected to be submitted to the National Assembly in the last week of this month. Approximately 10 trillion won will be allocated for quarantine support funds for small business owners, and about 1.9 trillion won in additional finances will be invested for loss compensation for small business owners. Accordingly, including the budget already secured, a total of 5.1 trillion won in loss compensation will be provided.

If submitted to the National Assembly at the end of this month, it is expected to pass the plenary session around mid-next month after going through the review process following the Lunar New Year holiday. The actual execution period is expected to be from mid to late February to early March.

The supplementary budget will utilize about 10 trillion won in excess tax revenue generated last year. However, since the excess tax revenue can only be used after the settlement procedure is completed in April, most of the amount will have to be covered by issuing deficit bonds.

There are also voices of criticism regarding the government preparing a record-breaking super budget of 607.7 trillion won this year and immediately preparing a supplementary budget in January. This is the first time in history that a supplementary budget has been prepared in January based on the submission date to the National Assembly.

In particular, opposition parties strongly oppose the large-scale financial spending and cash support at a time ahead of the presidential election in March and the local elections in June. It is pointed out as a 'vote-buying act' aimed at the elections.

Choo Kyung-ho, the floor leader of the People Power Party, said, "The Moon Jae-in administration and the Democratic Party of Korea distributed state funds ahead of the election to engage in 'money politics'." He pointed out, "'February supplementary budget' has never been made since the 1998 foreign exchange crisis, and the 608 trillion won budget has not even started execution yet." He also criticized the financial authorities, saying, "It is clear that succumbing to the Democratic Party's pressure for supplementary budget requests leaves a very humiliating mark on the financial authorities," and added, "It is shameful to have been a puppet dragged into vote-buying acts ahead of the presidential election."