South Korea: a new stimulus plan of 8 billion euros
Passers-by wearing masks on a street in Seoul, the capital of South Korea.
AP Photo / Ahn Young-joon
Text by: RFI Follow
2 min
South Korea announced a new stimulus package to the tune of around 8 billion euros on Monday, December 28.
The government wants to help businesses and businesses most affected by health restrictions.
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From our correspondent in Seoul,
Nicolas Rocca
This is the third time that the South Korean government has launched a plan to support small businesses and independents particularly affected by the crisis.
This decision is part of the fiscal policy of the country, which has already spent 283 billion dollars to deal with the pandemic.
The fourth largest economy in Asia, depends greatly on its exports and suffers particularly from the fall in international trade.
It is therefore necessary to stimulate local demand, and support the sectors in distress.
And the list is long, that of tourism for example has been at a standstill for almost a week, with the closure of all ski resorts and tourist sites.
Six million people affected
Taxi drivers, self-employed people, owners of gyms, karaoke bars and of course the restaurant industry are also suffering.
In the capital, restaurant closures are increasing and the number of empty signs is on the rise.
Nearly 6 million people will be affected by this recovery plan, owners of small businesses forced to close could receive up to 2,300 euros.
Despite a slight upturn in the last quarter, South Korea will experience a contraction of -1.1% of its GDP in 2020, but the country remains among the best off in the OECD in the field.
While the country has not had to confine its population, since November it has faced
the strongest wave of Covid-19
since the start of the epidemic.
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