WORLD S.Korea to provide 4-person household with 820 USD in emergency relief package

WORLD

S.Korea to provide 4-person household with 820 USD in emergency relief package

Xinhua

14:17, March 30, 2020

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SEOUL, March 30 (Xinhua) -- South Korean President Moon Jae-in said on Monday that his government decided to provide each four-person household in the bottom 70-percent income group with 1 million won (820 U.S. dollars) in its emergency disaster relief package over the COVID-19 outbreak.

Moon made the remarks during the third weekly meeting of the emergency economic council, saying the emergency disaster relief money of 1 million won will be offered to four-person households, of which gross income stays at or below 70 percent of the total, according to the presidential Blue House.

About 14 million households are expected to receive the handout. Households with three or lower family members will be granted less than 1 million won, while those with five or higher will be provided more.

Moon asked households in the top 30-percent income bracket to understand the decision, saying the government needs to leave room for additional fiscal stimulus package in order to rapidly tackle potential economic shocks.

To finance the disaster relief package, the government planned to draw up its second supplementary budget plan that is estimated to reach about 10 trillion won (8.2 billion U.S. dollars).

The second extra budget bill is forecast to be submitted to the National Assembly after the middle of next month given the scheduled parliamentary election on April 15. The parliament approved 11.7 trillion won (9.5 billion U.S. dollars) worth of the first supplementary budget earlier this month.

Moon said the government also decided to delay or lower four social insurance premiums and electric rates for the low-income bracket, small companies, mom and pop stores and the self-employed, adding that it will be enforced for fees in March.

The four social insurances refer to public health insurance, national pension, employment insurance and industrial accident compensation insurance.

After the inaugural emergency economic council meeting, Moon announced 50 trillion won (40.8 billion U.S. dollars) of emergency financial aid package for small firms, microbusiness owners and the self-employed.

The size of the package was doubled to 100 trillion won (81.6 billion U.S. dollars) in the second meeting to prevent competitive companies from going out of business because of a temporary liquidity shortage.

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