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Welfare, Health & Security News

  • Seoul and 25 Autonomous Districts Provide KRW 1 Trillion of Financial Assistance to Overcome COVID-19 Crisis

  • Welfare, Health & Security News SMG 1602

    The Seoul Metropolitan Government (SMG), together with 25 autonomous districts, will invest a total of KRW 500 billion to provide financial assistance for small businesses, vulnerable classes and affected industries to overcome the prolonged COVID-19 crisis. Targets comprise one million businesses and individuals, and the actual scale of assistance including loans is KRW 1 trillion. This is to begin as soon as April, and financial assistance will be provided sequentially for each target.

    The SMG plans to fully execute its financial assistance as fixed cost, such as rent, is higher in Seoul and as damages on businesses have been greater in Seoul than other regions as the SMG enforced preemptive and strict disease control and prevention measures from the very start of COVID-19. The SMG will also fill the blind spots that were not included in the list of targets of the central government’s fourth disaster fund.

    The SMG will concentrate its financial assistance on small businesses, which have been affected most. The SMG will provide its economic revitalization funding of up to KRW 1.5 million to 275,000 businesses where operations were prohibited or limited, separate from the fourth disaster fund of the central government. Small businesses that have closed their business and are not included in the target of the fourth disaster fund will be eligible to receive damage support funding of KRW 500,000 as well. Interest-free loans will be available for all small business owners in all autonomous districts.

    Employment support funding of KRW 500,000 per individual will be provided to 170,000 unemployed youths, who have not been supported even though they couldn’t find jobs due to COVID-19. Living support funding of KRW 100,000 per individual will be provided to about 450,000 low-income classes, including recipients of basic living expenses.

    Selective financial assistance will also be given for affected industries. About 30,000 workers of shuttle, chartered, and airport buses whose livelihood is threatened due to the decrease of passengers will be eligible to receive damage support funding of KRW 500,000. Other targets of assistance include nursing facilities for the elderly that are facing difficulties due to the intensive disease control and prevention measures, local childcare centers that need more operating expenses due to the emergency care, and daycare centers that are facing difficulties in management due to the prolonged closure as well.