Moon approves 4th extra budget to tackle pandemic economy

President Moon Jae-in speaks during an eighth Emergency Economic Council meeting at Cheong Wa Dae, Thursday. Moon said the government has decided to allocate 7.8 trillion won ($6.57 billion) for this year's fourth extra budget aimed at minimizing the economic fallout from the country's COVID-19 situation. Korea Times photo by Wang Tae-seok

Gov't to provide 20,000 won communication expense to everyone over 13

By Jung Da-min

President Moon Jae-in announced Thursday that the government will seek to allocate 7.8 trillion won ($6.57 billion) for this year's fourth extra budget aimed at minimizing the economic fallout from the country's COVID-19 situation.

“The government, which must protect the people's livelihood, feels a tremendous sense of responsibility and must come up with additional measures,” said President Moon, presiding over an eighth Emergency Economic Council meeting at Cheong Wa Dae, Thursday. “The fourth extra budget is aimed at providing tailored disaster relief for the business sector and those who have suffered the most financial damage from the coronavirus pandemic.”

Moon said the government would first focus on providing “tailored” support for those hit hard due to the outbreak, including small business owners, the self-employed and freelancers.

“As the core of this tailored disaster support, 3.8 trillion won, about half of the total, will be allocated to help 3.77 million people,” Moon said. “Out of this, 3.2 trillion won will be provided to small business owners and the self-employed, who will receive up to 2 million won in cash.”

A total of 1.4 trillion won aimed at protecting the jobs of freelancers and workers in “special employment categories” was also included in the budget, according to the President.

Moon said the government would ease the requirements for financial support so that about 880,000 people, who needed support to maintain their livelihoods but had been in a blind spot during the last payouts, would benefit this time.

It will also extend childcare leave periods while also increasing the number of households eligible for the childcare support fund.

The government and the ruling Democratic Party of Korea (DPK) agreed at a meeting Wednesday to give 20,000 won to all South Koreans over 13 to help pay for their September phone bills.

The ruling bloc said providing this support was to help people with their contactless activities which have soared in line with the government's strict social distancing restrictions.

But the opposition parties criticized this measure, saying it was the government trying to win popularity when concerns over the country's fiscal stability were rising, and it was also hard to see how it would boost the economy.

“Just three days ago, the President said that although he thought paying even a small amount of money to all citizens was reasonable, we needed to consider the reality of the country's financial situation. He said the fourth extra budget ― the first in 59 years ― was due to the country's COVID-19 situation, and providing relief selectively was inevitable considering the country's deteriorating fiscal stability,” said main opposition People Power Party spokesman Rep. Bae June-young.

“Then the government suddenly said they were reviewing the option of providing 20,000 to all Koreans over 13 for their phone bills … There seems to be no clear principles or careful consideration as the government is improvising the plan.”

Minor opposition Justice Party Chairwoman Rep. Sim Sang-jung also called for the government to reconsider the measure, saying it would not boost the economy.

“Nearly a trillion won of the budget will be used to provide 20,000 won to all Korean over 13 for their phone bills. This money will not go into the market but will be delivered to telecom companies,” Sim said.