250,000 won per person paid before Chuseok... Card Cash Back from October

The COVID-19 coexistence national support payment, which receives 250,000 won per person, will start before Chuseok, when about 88% of the people receive.

Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki held a meeting of the Emergency Economy Central Countermeasures Headquarters today (26th) at the government complex in Seoul and said, "Small businesses will be paid 90% of the Hope Recovery Fund before Chuseok. We will promote the expansion of the financial supply for the working class through this,” he said.

The government has previously announced that it will finish preparing for the payment of the national subsidy by the end of this month, but will decide the timing of the payment in consideration of the COVID-19 situation and in consultation with the quarantine authorities.

The payment of the Hope Recovery Fund for small businesses started on the 17th.

At a briefing this afternoon, 1st Vice Minister of Strategy and Finance Lee Won Lee added, “The mutual benefit national support fund will be paid out before Chuseok and will be paid 90% by the end of September, but detailed plans including the start time of payment will be finalized and announced on the 30th.” .

In addition, he said, "We are diligently preparing for the win-win consumption subsidy (card cashback) to be applied from consumption in October, and the timing of the resumption of offline consumption coupons that were to be resumed depending on the vaccination rate will be decided later in consideration of the quarantine situation."

The Ministry of Strategy and Finance aims to apply card cashback from consumption in October, but the timing will be finalized in consideration of the quarantine situation.

The National Support for Mutual Growth is basically for members of households in the bottom 80% of household income.

For single-person households and dual-income households, special standards apply, and about 88% of the total population receives it.

Income is calculated as the sum of health insurance premium co-payments for each household for the past June.

Based on a four-person household, employers receive subsidies if they are less than 308,300 won, and local subscribers receive subsidies if they are less than 342,000 won.

The base rate is 321,800 won for mixed subscribers, who have both an employer and a local member in one household.

Household composition is determined by household members on the resident registration record for each household as of June 30th.

Dual-income households are counted as having one more member to determine whether or not they are eligible for payment.

For example, the standard of health insurance premium for a dual-income family of four is 380,200 won or less, which is the same as the standard for a single-income household with five people.

Local subscribers are 42,300 won.

If there are two or more income sources in a household, it is considered a dual-income household.

This means that not only married couples, but also one of the parents and an adult child with income are eligible for the dual-income family special treatment.

Single-person households are provided with an annual income of 50 million won or less.

Based on the health insurance premium co-payment, employers are eligible to receive it if it is 143,900 won or less and local subscribers are 136,300 won or less.

However, even if these criteria are met, if a household member's total property tax base for last year exceeds 900 million won, or if the total financial income (including interest and dividends) last year exceeds 20 million won, the subsidy cannot be received.

This is because there is a separate 'cut-off' criterion for the exclusion of high-income earners.

In the case of a married couple's joint name, 900 million won is applied based on the sum of the tax bases of each couple.

If the amount of global income reported and paid last year decreased compared to 2019, the government is planning to receive and actively reflect the objection.

More specific criteria for selecting the recipients of the national subsidy and where the national subsidy will be used will be announced on the 30th.

Unlike last year's national disaster support fund, there is no limit on the maximum amount per household for the win-win national support fund.

Each household member receives 250,000 won, a four-person household receives 1 million won, and a five-person household receives 1.25 million won.

Another difference is that the subsidy is paid on an individual basis.

Adults (born before December 31, 2002) apply for the National Support Fund individually.

However, for minors, the resident registration head of the household applies and receives it.

The payment method is the same as for the previous national disaster aid last year.

You can choose the method you want from credit/debit card, prepaid card, and local love gift certificate through online/offline application.

The government estimated that about 23.4 million households would receive the national subsidy, with a total of 11 trillion won.

Card Cash Back is a program that refunds 10% of the excess amount as cash equivalents when the amount of credit/debit card usage increases by 3% or more from the average monthly card usage amount in the second quarter.

It was included in the 2nd supplementary budget (additional budget) as a three-piece package to support the damage caused by COVID-19 along with the national support for mutual growth and the Hope Recovery Fund for small businesses.

Money spent at online shopping malls, department stores, and large marts is not recognized as consumption.

Consumption through delivery apps is expected to be recognized as performance.

Each person can receive up to 200,000 won, 100,000 won per month, and the refunded amount can be used virtually like cash without any restrictions.

The government originally planned to provide up to 300,000 won for three months from August to October, but in consideration of the spread of COVID-19, it was shortened to two months and the timing was decided later.

Card cashback promotes face-to-face consumption in alleyways, so there are concerns that it may interfere with the prevention of COVID-19.

An official from the Ministry of Strategy and Finance said, "It does not mean that we will unconditionally start in October regardless of the quarantine situation.

Meanwhile, the government has advanced the payment period of about KRW 4.1 trillion in subsidies for labor and children by one month from the beginning of September to the end of this month.

The financial supply for the working class through the contribution of the Financial Services Agency is expanding from 7 trillion to 8 trillion won per year to 9 to 10 trillion won.