S. Korea proposes 15 tln-won extra budget to fund another round of relief aid

The extra budget, the third-largest ever, will be used to fund the 19.5 trillion-won relief aid package, the fourth of its kind, designed to help ease economic pains caused by the COVID-19 pandemic, according to the finance ministry, Yonhap reports.

To finance the extra budget, the government plans to sell 9.9 trillion won in state bonds.

The ministry plans to submit a supplementary budget proposal to the National Assembly on Thursday for approval.

Smaller merchants and self-employed people have faced extended business slumps as the country implemented tougher virus curbs in early December for about two months over a resurgence in new coronavirus cases.

«The government has drawn up the aid package in a way that covers affected people who were left behind in its previous relief measures,» Finance Minister Hong Nam-ki said at a press briefing.

Last year, the government has provided three rounds of pandemic emergency handouts totaling 31.4 trillion won, including the 14.3 trillion won in stimulus checks doled out to all households in May.

In 2020, the country drew up supplementary budgets totaling 67 trillion won four times to cope with the economic fallout of the pandemic.

The fourth round of the relief funds will be spent to support affected sectors, shore up the sluggish job market, and bolster the country's antivirus efforts, according to the ministry.

Under the plan, the total number of recipients of the aid package will reach 6.9 million people, about 2 million more than that of beneficiaries under the third round of cash handouts.

The maximum amount of support will be up to 5 million won per recipient, depending on the impact of virus curbs on business operations and declines in sales.

The ministry said it will earmark 8.1 trillion won to support smaller merchants and the underprivileged hit hard by the pandemic.

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