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Virus-hit low-income earners to receive W1.5 mil. in relief
Deputy Prime Minister and Finance Minister Hong Nam-ki, second from right, speaks at a meeting at the Seoul Government Complex in Gwanghwamun, Seoul, Thursday. / Yonhap
By Lee Kyung-min
By Lee Kyung-min
Some 930,000 people including those whose income dropped at least 25 percent compared to before the COVID-19 pandemic will be able to receive up to 1.5 million won ($1,220) in emergency relief in June, the government said Thursday.
The latest relief measure seeks to address concerns that low-income earners who are not subscribed to the state-run Employment Insurance system and therefore left out of jobless claim benefits remain particularly vulnerable amid rising layoffs.
Also factored in was a rapid loss of income following unpaid leave experienced by many salaried workers, to whom subscribing to the state-run insurance system has become meaningless.
“The government has decided to strengthen social safety net to minimize the hardship experienced by the vulnerable group of people whose loss of job and reduced income can be felt more painfully,” Deputy Prime Minister and Finance Minister Hong Nam-ki said at a meeting at the Seoul Government Complex in Gwanghwamun, Seoul.
Of about 1.5 trillion won needed for the program, 940 billion won will be pulled from government-managed reserves. The remaining 560 billion won will be included in the third extra budget bill set to be drafted in the weeks to come.
Eligible are workers that earn 50 million won or less in annual income or those who are self-employed with less than 150 million won in gross annual sales.
Those with greater earnings figures can apply as long as they are a member of a family whose total income doesn't exceed the household median income.
For workers who earn between 50 million won and 70 million won in annual income or the self-employed who generate between 150 million won and 200 million won in annual sales, the income drop should be no less than 50 percent.
But people with greater earnings figures can apply if they are members of a family that earns 150 percent or less of the household median income.
Employment insurance subscribers on unpaid leave will receive the benefit regardless of the level of income drop as long as they were put on leave between March and May.
Any member of a family that doesn't earn more than the household median income can seek the benefit if they had been on leave for five days or more each month between March and May.
Specifics will be announced May 18 and a related website will open May 25. The money will be given as early as two weeks after applications are submitted. One million won will be given first and the remaining 500,000 won later.
Meanwhile, Hong said a comprehensive economic package that encompasses relief and stimulus will be drawn up to spur the economy beyond the fight against the virus.
Under the plan, digitization and investment in contactless transactions will be fostered including 5G telecommunications, artificial intelligence and social overhead capital.