S. Korea passes 2nd extra budget of $49.5 bn with larger Covid relief funds

[Photo by Han Joo-hyung]

South Korea¡¯s National Assembly on Sunday approved on a 62 trillion won ($49.5 billion) extra budget bill with an increase in Covid-19 relief funds for 3.71 million small merchants and freelance workers, which could be the last of its kind for this year.

The second extra budget is larger than the government¡¯s initial proposal of 59.4 trillion won after the legislature agreed to expand relief funding for micro businesses such as taxi and bus drivers, as well as freelance workers.

With the increase in the extra budget, the government will make cash handouts of up to 10 million won to 3.71 million small business owners and self-employed workers to help them cover losses caused by the Covid-19 crisis and its subsequent social restriction measures. The initial plan was to dole out up to 6 million won to 3.7 million individuals.

The extra relief aid will be given to businesses with an annual revenue of below 5 billion won, as well as self-employed workers like taxi drivers, delivery driver, and insurance broker. Businesses will receive compensation fund of up to 10 million won for losses caused by the virus crisis. Contract workers will get 2 million won and corporate taxi drivers 3 million won, both 1 million won more than what the government initially planned.

Cash handouts of relief funds will begin immediately after Korean President Yoon Suk-yeol gives a nod to the extra budget bill later today. The bill was passed at the Cabinet meeting headed by prime minister on Monday morning.

Korean lawmakers passed the second extra budget just three days before the country¡¯s local election scheduled on June 1 to select metropolitan mayors, provincial governors, and heads of local administrative units.

[¨Ï Maeil Business Newspaper & mk.co.kr, All rights reserved]