An additional 3 million won in quarantine support will be provided to small businesses whose sales have decreased due to the extension of high-intensity social distancing measures.
The amount of compensation for small business losses will be increased from KRW 3.2 trillion to KRW 5.1 trillion.
To raise this fund, the government decided to prepare an additional supplementary budget worth 14 trillion won before the Lunar New Year holiday by mobilizing 10 trillion won in excess tax revenue last year.
Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki said this at the government joint briefing held today (14th) at the government complex in Seoul to extend quarantine measures and support small businesses.
The government has decided to provide additional quarantine subsidies worth 3 million won to small businesses with reduced sales.
This is an additional 3 million won following the 1 million won in quarantine support paid in December last year, when it switched from 'With Corona' to the high-intensity quarantine system.
The quarantine subsidy is a fund that is paid in cash regardless of the size of sales or the level of quarantine measures if only a decrease in sales is confirmed.
The purpose is to alleviate the burden of fixed cost of rent and labor costs and to support the maintenance of livelihoods.
In consideration of the extended deadline for applying high-intensity quarantine measures, we will also increase the financial resources for loss compensation for small businesses in businesses with restricted business bans.
It will be increased to 5.1 trillion won by adding 1.9 trillion won to the previously organized 3.2 trillion won.
The government has decided to prepare an additional budget of 14 trillion won to raise this fund.
It was decided to mobilize additional excess tax revenue last year, which is expected to reach 10 trillion won.
However, since excess tax revenue can be used after the settlement of accounts was completed last year, it was decided to first issue deficit government bonds to cover the funds.
Deputy Prime Minister Hong bowed his head, saying, "As the chief minister, I apologize" for the occurrence of 10 trillion won in excess tax revenue once again.
The government will work on the supplementary budget by next week and submit it to the National Assembly in the last week of January.
Deputy Prime Minister Hong Nam-ki said, "In accordance with the extension of quarantine measures, we are providing a one-point supplementary budget limited to support for small businesses and quarantine support in terms of providing more support for damage to self-employed and small businesses and promptly returning excess tax revenue that came in more than expected last year."