Prime Minister Kim: "Due to Urgent Situation, Early-Year 14 Trillion Won Supplementary Budget Draft Prepared... Requesting Prompt Approval from National Assembly"

National Assembly Policy Speech

[Asia Economy Sejong=Reporter Son Seon-hee] Prime Minister Kim Boo-kyum said on the 27th, "Due to the urgent situation of (COVID-19 prevention), we have urgently prepared a supplementary budget (supplementary budget) despite it being early in the year," and added, "Considering the urgent situation, the ruling and opposition parties have been discussing the necessity of the supplementary budget, so I earnestly ask that the supplementary budget submitted by the government be promptly reviewed and approved."

At 2 p.m. that day at the National Assembly, Prime Minister Kim delivered a policy speech related to the '2022 supplementary budget and fund operation plan revision,' saying, "Unlike when the budget was prepared last year, a new enemy with very strong transmissibility called Omicron has appeared, and accordingly, additional support and compensation for losses required for quarantine have become inevitable."

The supplementary budget of 14 trillion won includes 11.5 trillion won for small business quarantine support funds and loss compensation, 1.5 trillion won for strengthening quarantine, and 1 trillion won in contingency funds. Approximately 3.2 million small business owners whose sales have decreased due to COVID-19 prevention will receive an additional 3 million won in quarantine support funds, and the minimum payment for loss compensation has been increased from the existing 100,000 won to 500,000 won.

Prime Minister Kim said, "This supplementary budget also reflects the intention to promptly return the tax revenue collected more than expected last year to the people," adding, "Since the situation is urgent, the government will first cover most of the funds through government bond issuance and plans to repay using additional tax revenue as soon as the '2021 fiscal year settlement' is completed in April." He added, "We will also appropriately divide the timing of bond issuance to minimize the impact on the national economy."

Prime Minister Kim repeatedly requested the ruling and opposition parties, saying, "Speed is most important for this supplementary budget," and "The support measures contained in the supplementary budget must be quickly delivered to the livelihoods of small business owners and self-employed people."

Regarding the rent burden, which is the greatest burden on small business owners and the self-employed, he said, "A win-win plan in which landlords also share the burden is urgently needed," adding, "As long as the rent burden continues despite government support, their suffering will inevitably continue. If the National Assembly begins discussions in earnest, the government will actively support it."

Regarding the recent daily new COVID-19 cases consistently reaching the 10,000 range, Prime Minister Kim expressed concern, saying, "Although the severity and fatality rate of Omicron are less than half of the Delta variant, its high transmissibility inevitably places a heavy burden on the medical response system." However, he said, "If the government responds flawlessly according to the prepared strategy, supported by the cooperation and dedication of the medical community and the participation and cooperation of the people, I believe this crisis can be overcome," and appealed, "Please once again demonstrate the power of coexistence, inclusion, and cooperation shown so far."

Below is the full text of Prime Minister Kim's policy speech.

[Full Text]

Respected citizens,

Speaker Park Byeong-seug and members of the National Assembly,

To alleviate the pain of small business owners and self-employed people who have suffered greatly due to COVID-19,

the government has urgently prepared the 2022 first supplementary budget and

fund operation plan revision,

and I stand here to explain its contents.

First, over the past two difficult years due to COVID-19,

I deeply thank the people who trusted and supported the government,

the medical staff dedicated on the front lines of quarantine,

and the small business owners and self-employed people who willingly participated in quarantine.

Thanks to the dedication and efforts of the people,

even amid a global crisis,

we have endured well without the economy stopping or the medical system collapsing,

balancing quarantine and the livelihood economy.

I bow my head once again in gratitude to each and every citizen.

Respected citizens and members of the National Assembly!

At the end of last year, we cautiously began the phased recovery of daily life.

However, as the quarantine situation worsened,

we had no choice but to decide on a 'temporary pause.'

Also, last Monday, because the upcoming Lunar New Year holiday could become an opportunity for Omicron spread,

we reluctantly asked the people to refrain from visiting their hometowns and meeting family and relatives.

Whenever we requested social distancing and reduced movement,

the faces of our small business owners and self-employed people inevitably came to mind first.

Although there was no other choice for the safety and lives of the people,

I felt heavy-hearted that we could not support the expectations of those who have been waiting with a flicker of hope.

During the two years of COVID-19, our small business owners have endured harsher times than ever.

Last year alone, more than 230,000 small business owners applied for closure support,

and those who maintained their stores saw their operating profits decrease by an average of 40%.

The government, though insufficient, has been providing 1 million won in quarantine support funds since last December

to repay the sacrifice and dedication of small business owners and self-employed people facing great difficulties in their livelihoods.

To quickly pay the loss compensation legislated by the National Assembly last July,

we have allowed advance payments of 5 million won before the compensation calculation through a 'pay first, settle later' method.

The scope of loss compensation will be expanded, and the minimum compensation amount will be raised to 500,000 won.

However, as strengthened quarantine measures have continued for over a month,

and small business owners and self-employed people have had to give up the year-end and Lunar New Year peak seasons,

the support so far has been insufficient to wipe away their tears.

Also, unlike when the 2022 government budget was prepared last year,

a new enemy with very strong transmissibility called Omicron has appeared,

making additional support and loss compensation for quarantine unavoidable.

Due to the urgent situation, the government has urgently prepared a supplementary budget despite it being early in the year.

We ask for broad understanding from the people and members of the National Assembly.

Respected citizens and members of the National Assembly,

I will explain the main contents of the 2022 first supplementary budget.

The government has prepared a supplementary budget of 14 trillion won, mostly in direct support, for essential and urgent projects to support small business owners and strengthen quarantine,

and submitted it to the National Assembly on the 24th.

First, 11.5 trillion won has been allocated for small business quarantine support funds and loss compensation.

To reduce the burden of fixed costs such as rent and labor costs that small business owners must pay regularly even during social distancing,

in addition to the 1 million won currently being paid, an additional 3 million won per business will be provided as quarantine support funds.

Since the damage from social distancing is widespread, industries not covered by loss compensation, such as travel and accommodation, have been broadly included.

Additional funds will be secured for loss compensation expected due to the extension of quarantine measures.

Second, 1.5 trillion won has been allocated to strengthen quarantine, including securing hospital beds and purchasing therapeutics.

We will secure a total of 25,000 hospital beds to ensure smooth treatment even if more than 10,000 confirmed cases occur daily.

We will purchase additional oral therapeutics that reduce severity to ease the burden on the medical system,

and firmly secure weapons to fight COVID-19.

Finally, 1 trillion won has been allocated as contingency funds to prepare for potential future quarantine risks.

The supplementary budget explained above also reflects the intention to promptly return the tax revenue collected more than expected last year to the people.

Since the situation is urgent, the government will first cover most of the funds through government bond issuance,

and plans to repay using additional tax revenue as soon as the 2021 fiscal year settlement is completed in April this year.

We will appropriately divide the timing of bond issuance to minimize the impact on the national economy.

Respected members of the National Assembly,

speed is most important for this supplementary budget.

The support measures contained in the supplementary budget must be quickly delivered to the livelihoods of small business owners and self-employed people.

The government will actively consider reasonable alternatives from members during the National Assembly review process,

and will sincerely engage in the review.

Once the National Assembly approves the supplementary budget,

we will thoroughly prepare to execute it immediately.

Since the ruling and opposition parties have also been discussing the necessity of the supplementary budget considering the urgent situation,

we earnestly ask that the supplementary budget submitted by the government be promptly reviewed and approved.

The greatest pain currently experienced by small business owners and self-employed people is the rent burden.

In addition to financial support such as the supplementary budget,

a win-win plan in which landlords also share the burden is urgently needed to alleviate their pain further.

As long as the rent burden continues despite government support, their suffering will inevitably continue.

If the National Assembly begins discussions in earnest, the government will actively support it.

Respected citizens and members of the National Assembly,

Omicron is raging worldwide, with daily record-high confirmed cases.

According to data reported from various countries so far,

the severity and fatality rate of Omicron are less than half of the Delta variant,

but its high transmissibility inevitably places a heavy burden on the medical response system.

The government anticipated this situation in advance,

and has proactively prepared quarantine measures to increase the speed and efficiency of response to Omicron.

We have also prepared sector-specific response plans to ensure that essential social functions such as education, transportation, firefighting, and public safety remain stable despite the surge in confirmed cases.

As with all COVID-19 situations,

the unprecedented rapid spread of Omicron is a path none of us have traveled before.

However, if the government responds flawlessly according to the prepared strategy,

supported by the cooperation and dedication of the medical community and the participation and cooperation of the people,

I believe this crisis can be overcome.

It is said that the darkest hour is just before dawn.

Let us all promise the hopeful spring,

and I earnestly ask you to once again demonstrate the power of coexistence, inclusion, and cooperation shown so far.

Citizens,

thank you.