Korea introduces measures to support livelihoods ahead of Lunar New Year

[Photo by Lee Seung-hwan]

With the Lunar New Year approaching in less than a month, the South Korean government introduced a string of measures designed to support the livelihoods of vulnerable households and small businesses.

The measures include discounts on electricity bills for the vulnerable groups, support for loan interest for small and medium-sized enterprises (SMEs) and the self-employed, and an expansion of vouchers that can be used at traditional markets.

During a meeting between the government and the ruling People Power Party on Sunday, officials agreed to keep electricity charges at the current rate for marginalized groups this year.

Under an additional government-funded program worth 300 billion won ($228 million), a total of 400,000 self-employed individuals will receive interest support on loans from non-bank lenders, with up to 1.5 million won per person.

SMEs and self-employed businesses that pay interest rates ranging from five to seven percent can apply for the support funds.

Moreover, the government will inject 39 trillion won into SMEs and self-employed businesses to protect them from temporary financial difficulties. It will increase the total issuance of traditional market vouchers from 4 trillion to 5 trillion this year.