6th Ministerial Meeting on the Economy in 2020
Government to Launch Emergency Support for
Tourism and Transportation
Deputy Prime Minister Hong Nam-ki presided over the 6h Ministerial Meeting on the Economy held on February 17, where emergency support for businesses directly affected by the COVID-19 outbreak, such as tourism, transportation and restaurants, was a main topic of discussion, as well as the current situation of manufacturing supplies on which Japan’s export control is expected to have an effect.
The following is a summary of Deputy Prime Minister Hong’s keynote address.
Emergency support for tourism, restaurants and transportation
The government has drawn up an emergency support for tourism, restaurants and transportation, which are the businesses directly affected by the COVID-19 outbreak.
- Provide small tourism businesses with a total of 50 billion won of credit-based loans with a one percent interest rate
- Expand the 1.5-2.25 percent interest rate loans for tourism businesses and give a one year postponement of loan repayment
- Give property tax cuts to hotels affected and allow duty-free shops to defer their payment of business license taxes for up to one year
- Ease requirements for the employment retention support
- Increase the business loans for restaurants (currently 10 billion won) and lower the interest rates by 0.5 percentage points to 2-2.25 percent
- Promote jointly purchasing food materials
- Strictly require hygiene and infection prevention, early hold the Korean Food Festival and work on the improvement of tourist facilities
Air transport (low cost carriers)
- Provide a 300 billion won worth of support for low cost carriers suffering liquidity shortages
- Allow low cost carriers to defer the payment of airport service charges, and postpone withdrawing traffic rights and airport slots until the end of 2020
- Increase airport slots at Incheon International Airport to 70 an hour and adopt a government guarantee on aircraft leasing
Maritime transport (passenger ship)
- Make available a total of 60 billion won for emergency business operation and give 100 percent cuts on port charges, including passenger terminal charges
- Provide wage support to help retain employment
- Allow a longer-term regular vessel maintenance by up to three months and work on contingency plans in case COVID-19 lingers longer than expected, such as finding alternative terminals, voyages and labor force
Manufacturing supply situation since Japan’s export control
Korea’s manufacturers have been doing well, not seriously affected by the export control. However, there are always uncertainties and we urge Japan to work to lift the control.
The government has been pursuing increased competitiveness of the Korean economy in core supplies for manufacturing, such as parts, high-tech materials and equipment. We will continue to work on industrial restructuring and the building of a stronger value chain.
Please refer to the attached pdf