SEOUL (SOUTH KOREA) – To aid struggling small businesses facing closure because of social distancing norms, South Korea is preparing the fourth supplementary budget of $6.6 billion.
President Moon Jae-in said in an economic policy meeting that spending 7.8 trillion won (5.06 billion pounds) will be used to boost small businesses and households.
“The unexpected resurgence of the coronavirus is delaying recovery momentum, and economic activities across domestic demand and consumption are sharply contracting,” the president said.
As much as 3.2 trillion won will be used as cash payments for small businesses and 1.4 trillion won will be set apart to help struggling job seekers.
Every citizen aged 13 years or above will be eligible for subsidies to pay their mobile phone bills.
The fourth largest economy in Asia, South Korea has already pledged a stimulus package worth 277 trillion won ($233.66 billion).
The strict restrictions imposed in August have affected eateries, the hospitality sector and retail segments. Dining at restaurants after 9 pm has been banned and the number of coffee franchises has been limited for takeout and delivery.
Data reveals that the number of self-employed businesses were down by 128,000 in July from a year earlier to 5.55 million, the biggest dip since 2009.
