Do Je-hae edits news stories as part of the AI team.
W50 trillion emergency aid package set for small firms
President Moon Jae-in, second from right, pledges allegiance to the flag at the start of the first emergency economic council meeting at Cheong Wa Dae, Thursday. Heads of economy-related ministries and financial institutions took part in the meeting. Yonhap
By Do Je-hae
By Do Je-hae
President Moon Jae-in announced a sweeping financial aid package worth around 50 trillion won ($39 billion) during an emergency meeting convened at Cheong Wa Dae, Thursday.
The inaugural meeting of the so-called Emergency Economic Council (EEC), consisting of the heads of relevant ministries and institutions, focused on measures to relieve the problems of small- and medium-sized firms, small business owners and the self-employed.
Moon announced earlier this week that he will chair an EEC meeting every week for the next three months to ensure quick and effective decision-making regarding measures dealing with the economic fallout from the COVID-19 pandemic.
This is the first time for a Korean president to chair an emergency economic meeting since the global financial crisis in 2008, and is seen to reflect Moon's determination to overcome the grave economic situation. Finance Minister Hong Nam-ki, SMEs Minister Park Young-sun and Bank of Korea Governor Lee Ju-yeol participated in the meeting along with other Cabinet members.
“The government is resolved to tackle the global economic emergency. The inaugural Emergency Economic Council meeting today decided on the first steps to prevent the risk of bankruptcy for small companies, small business owners and self-employed people who are the basis of the economy for the working class,” Moon said at the beginning of the meeting according to press pool reports.
“The 50 trillion won program for stabilizing the people's livelihoods is unprecedented in its scale and content. The government and the Bank of Korea and the entire financial sector are joining forces to provide sufficient liquidity to SMEs, small business owners and the self-employed.”
The rescue package is aimed primarily at addressing the financial difficulties of those vulnerable business groups, as they have been hit the hardest by the COVID-19 pandemic. “First the financial support for small businesses has been expanded to 12 trillion won. This will enable them to borrow money at the low interest rate of 1.5 percent from any financial institution. In addition, we will introduce a 5.5 trillion won special loan guarantee program. This will be particularly helpful for struggling small business owners and the self-employed.”
In addition, the government will implement measures to reduce the burden of small businesses in repaying loans.
The President did not specifically mention a basic income for the length of the disease outbreak which has been requested by some local government heads such as Gyeonggi Province Governor Lee Jae-myung.
Nonetheless, he pointed out the need to support people whose incomes have been reduced due to the pandemic or have lost their jobs. “The first priority is to protect people's livelihoods from falling apart,” Moon said.