3.7 million small business owners to receive over 6 million won

The South Korean government and the People Power Party held the first joint meeting since the launch of the new administration led by President Yoon Suk-yeol on Wednesday and decided to provide a minimum of six million won to 3.7 million small business owners who experienced losses from COVID-19. Compensation for COVID-19 damage, which was the No. 1 pledge made by President Yoon will be implemented quickly after the new administration took office.

It was announced after the meeting that a revised supplementary budget plan of 33 trillion won plus more would be formed to provide a minimum of six million won in compensation regardless of how much damage small business owners have experienced. “We requested the payment of at least six million won to 3.7 million small business owners and small and medium-sized enterprises with annual sales revenue less than three billion won and the government accepted it,” said Kwon Seong-dong, the floor leader of the People Power Party. The government and the party decided to provide a minimum of six million won to keep President Yoon’s pledge to provide 10 million won in COVID-19 compensation, including four million won paid under the Moon Jae-in administration.

President Yoon will hold the first Cabinet meeting on Thursday and pass the revised supplementary budget plan drawn up by the Ministry of Economy and Finance to the National Assembly. With the new budget plan, this year’s supplementary budget will exceed over 50 trillion won, including the first supplementary budget of 16.9 trillion won passed in February under the Moon administration.

The government and the party also agreed to include the travel, performance and exhibition, and air transport services on the list of industries eligible for compensation. In addition, the rate of indemnification for loss, which is the basis of calculating the indemnification for loss in accordance with the relevant act, will be raised from 90 percent to 100 percent and the quarterly lower limit will be raised from 0.5 million won to one million won. The indemnification for loss will be provided separately from the six million won of compensation for COVID-19 damage. “The execution of all discretionary spending will be reassessed from ground zero to identify available funds as much as possible through restructuring, net budget surplus, etc.,” said Choo Kyung-ho, the Deputy Prime Minister and Minister of Economy and Finance.

The People Power Party will quickly facilitate the National Assembly’s discussion on the supplementary budget to pass the plan before local elections on June 1, if possible. “We kindly ask for the cooperation of the Democratic Party of Korea, which is a majority party, to quickly pass the revised supplementary budget plan as it is focused on compensation for small business owners, which is directly related to the livelihoods of the public,” said the People Power Party.


Jeong-Soo Hong hong@donga.com