52nd Meeting of Central Economic Response Headquarters
Government to Provide Reinforced Support for Pandemic-hit Businesses
Deputy Prime Minister Hong Nam-ki presided over the 52nd Meeting of the Central Economic Response Headquarters held on January 6, and discussed reinforced support for pandemic-hit businesses and measures to stabilize consumer prices before the Lunar New Year holidays. Plans for frontloading its fiscal spending in the first half, investment in public institutions and proper liquidity management of this year’s 495 trillion won worth policy-based financing were another topics of discussion.
DPM Hong also talked about plans to continue with its coordinated effort to seek complete recovery and help push towards a post-pandemic economy in 2022.
The following is a summary of DPM Hong’s keynote address.
Support for pandemic-hit small businesses and self-employed
As the Lunar New Year holiday nears, the government will roll out 6.5 trillion won worth small business support package as quickly as possible, including 2.2 trillion won on business loss compensation, 3.2 trillion won to compensate losses caused by the strengthened quarantine and disease prevention. The government will also implement business loss compensation for the first quarter in advance to be mostly completed before the holidays.
The government will also provide total of 40 trillion won worth reinforced support for small businesses and self-employed in a bid to help businesses overcome pandemic-driven difficulties ahead of the Lunar New Year holidays. The newly arranged support is separate from the previous arrangement of a total of 35.8 trillion won for small business loans and guarantees.
Stabilizes consumer prices and livelihoods of the people
The government will work to ensure the supply of essential items for the Lunar New Year holiday by increasing supply of 16 necessities by 31 percent and extend tax and tariff support.
To promote local economy, the government will also work to increase rate of the discount coupons for farm product and raise local market gift certificates purchase limit up to 1 million won when purchasing mobile certificates and 700,000 won for note certificates.
Please refer to the attached pdf