President Yoon Suk-yeol’s administration will pay more than $20 billion to small businesses and the self-employed.
South Korea unveiled plans Thursday to pay more than $20 billion to small businesses and self-employed people to compensate losses due to COVID restrictions.
The first supplementary budget since President Yoon Suk-yeol took office this week is on a scale of 59.4 trillion won ($46 billion), but 23 trillion won ($18 billion) will be paid to governments. provinces, the Finance Ministry said.
The ministry said in a statement that it would not issue any bonds to finance the budget as this year’s tax revenue projection is revised upwards by 53.3 trillion won (US$41 billion) and another 7 trillion won ( $5.4 billion) in existing spending plans to be changed.
It said 26.3 trillion won ($20.4 billion) would be paid to some 3.7 million smaller businesses and self-employed individuals affected by various COVID-related restrictions, and another 6.1 trillion won. ($4.7 billion) would be used to strengthen the country’s medical capabilities.
The rest will be spent on strengthening wellness programs.
Separately, the ministry said it would spend 9 trillion won ($7 billion) paying off government bonds before they mature, cutting issuance planned for this year, or a combination of the two.
Yoon had promised a 50 trillion won (US$38.7 billion) package during his election campaign, but then-President Moon Jae-in’s government has already submitted a supplemental budget of 16.9 trillion won (US$13 billion) earlier. of the May 9 elections.
The supplementary budget would increase total government spending this year by 52.4 trillion won (US$40.6 billion) to a record 676.7 trillion won (US$524.3 billion), a smaller increase. than increased tax revenue due to a debt reduction plan.
Despite the increased spending, this year’s government debt is expected to drop to 49.6 percent of annual gross domestic product from 50.1 percent seen previously, the ministry added.
The supplementary budget bill is due to be submitted to parliament for approval on Friday.