30th Meeting of Central Economic Response Headquarters
Government to Strengthen Virus Support
Deputy Prime Minister Hong Nam-ki presided over the 30th Meeting of the Central Economic Response Headquarters held on February 24, and discussed plans to strengthen government’s support for virus-hit businesses and workers, which include drawing up extra budgets and extending temporary support scheduled to expire in the first half.
The following is a summary of Deputy Prime Minister Hong’s keynote address.
COVID-19 situation and extra budget proposal
With new daily cases dwindling to around 400 and free vaccinations scheduled to start on February 26, we hope the country will fast achieve herd immunity. On the other hand, we need to ramp up coronavirus support given a number of small businesses and workers suffering for a long time and domestic demand that has yet to pick up. The new support has to cover emergency reliefs and job creation measures, as well as extending the temporary programs. We will do the following for the new support.
- Draw up supplementary budgets to compensate businesses for their lockdown losses, help job markets and ensure successful vaccine rollout
- Work to make the business loss compensation fair and sufficient according to the level of losses and disease prevention efforts
- Work on job creation programs with a focus on young adults and women
- Plan support programs which will be paid for by the 2021 original budget, setting aside those to be financed by the supplementary budget
Job creation measures, including those for young adults and women, will be announced next week after joint deliberation with related ministries.
Extend temporary support
The government is mulling over the extension of temporary measures scheduled to expire in the first half.
- 70 percent tax reduction for commercial property rent cuts given to landlords, scheduled to sunset in June, being considered for a six month extension to December
- Payment deferrals for social security insurance contributions, such as employment insurance contributions and industrial accident compensation insurance contributions, being considered for a three month extension to June, as well as utilities bill payment deferrals
- Payment exemption for national pension contributions, being considered for a three month extension to June
- 30 percent retroactive contributions cut for the industrial accident compensation insurance, being considered for three months from January to March to help small businesses hit hard by the recent lockdown
Employment insurance for independent workers
The government has been working for the country’s employment insurance to cover all workers by 2025. Artists have been covered since December 2020, and from July 2021, those working independently in 12 different areas will be added, such as visiting teachers and insurance agents. The independent workers will be able to receive the insurance benefits when their income falls 30 percent or more compared with a year ago for a certain period of time, such as for the latest three months.
