Gov’t ups aid to offset Sewol effect

The government has decided to more than triple assistance to tourism service providers and small business owners to reduce the impact of the tragic ferry sinking on the domestic economy.

At an economic-related ministries meeting presided over by Choo Kyung-ho, vice minister of strategy and finance at the Government Complex in Seoul yesterday, the government announced measures to augment a set of “preemptive” economic revitalization measures disclosed two days earlier.

The Friday measures, aimed at curbing the slowdown of the economy in the wake of the sinking of the Sewol include front-loading 57 percent of the national budget in the first half of the year, up from 55 percent in the original plan.

The government also said on Friday it will offer cheap loans and some public funds to small businesses that have been hit hard.

Additional measures yesterday stipulate raising the amount of assistance provided through the state-run tourism promotion development fund from 15 billion won ($14.6 million) as announced on Friday to 50 billion won.

It will also increase direct assistance to the affected small businesses from 30 billion won to 100 billion won.

BY MOON GWANG-LIP [joe@joongang.co.kr]