KRW 20T economic policy toward COVID-19 outbreak announced
Feb. 29, 2020
Global Korean Post
By Kim Young Deok and Lee Jihae
The government on Feb. 28 announced a policy worth KRW 20 trillion to minimize the economic losses incurred by the COVID-19 outbreak.
This was in response to the call of President Moon Jae-in on Feb. 24 in a senior secretaries’ meeting to secure aggressive financial investment to boost domestic demand and minimize corporate losses.
In a meeting of relevant government branches on Feb. 28 at Government Seoul-Complex, Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki said the policy aims to go beyond immediate aid to also cover “public safety,” “stabilization of the people’s livelihood” and “reinforcement of vitality.”
The new policy promises stronger measures than those toward disinfection and support for losses, offering financial and tax breaks worth KRW 7 trillion.
To encourage consumption in a variety of sectors such as culture and tourism, the policy supplies five types of consumption coupons, a 50% tax exemption for commercial building owners who lower rent for their tenants, a 70% reduction of a special consumption tax on cars, and a temporary 50% discount on admission to national cultural and art facilities.
The government will also raise the limit on “loans for supporting financial mediation” under a financial policy worth KRW 9 trillion to provide low-interest loans for small to medium businesses. Another KRW 3.2 trillion in assistance will come through an “urgent management stability fund” via commercial banks.
“(The government) will provide support to overcome the damage caused by the COVID-19 incident and maximize the reinforcement of economic vitality through a large-scale support policy worth KRW 20 trillion,” Minister Hong said.