S. Korea seeks extra budget for cash payment to virus-hit families

President Moon Jae-in speaks during the third session of the emergency economic council at the presidential office Cheong Wa Dae, Monday. Yonhap

South Korea said Monday it will push for a second extra budget worth 7.1 trillion won ($5.8 billion) to provide cash to more than half of the country's households to help minimize the economic fallout from the spread of the new coronavirus outbreak.

The government said the relief package for 14 million low-income households would cost 10.3 trillion won.

Under the plan, 1 million won would be given to each household with four or more people that rank in the bottom 70 percent of gross income, according to the Ministry of Finance and Economy.

The proposed extra budget will be created by readjusting existing spending plans and cost-cutting measures, the ministry said. Local governments will shoulder 2 trillion won for the cash payment to households, it added.

The country also said virus-hit smaller companies and households will be exempt from paying medical insurance, electricity and other utility bills for up to three months. (Yonhap)