Seventh supplementary budget will total $11.8 billion

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Seventh supplementary budget will total $11.8 billion

Hong Nam-ki, Finance Minister, announce the government's plan of another supplementary budget on Friday. [YONHAP]

Hong Nam-ki, Finance Minister, announce the government's plan of another supplementary budget on Friday. [YONHAP]

The government announced a supplementary budget of 14 trillion won ($11.8 billion), which it hopes will pass the National Assembly before the Lunar New Year holidays.  
 
It will be Korea's seventh supplementary budget since the Covid-19 pandemic began in 2020.  
 
The government justified its decision with buoyant tax revenues from 2021.  
 
Finance Minister Hong Nam-ki said Friday the extra budget will help small businesses affected by social distancing measures.  
 
“Some 3 million won will be given to each small business owner and self-employed person to help with fixed costs and sustaining their livelihoods,” Hong said.  
 
Some 10 trillion won will be used for those payments.  
 
Most of the budget will be financed by issuing government bonds, Hong said, which will be repaid ultimately with the excess taxes collected last year. 
 
“We could only use the excess taxes after finishing the tax settlement procedures," he said, "so we are planning to use government bonds as an emergency.”  
 
The government plans to release details of its extra budget plan next week.  
 
Restaurant, coffee shops and bars are expected to continue suffering after the government Friday extend a 9 p.m. curfew for another three weeks.  
 
On Thursday, the Finance Ministry announced that it collected 323.4 trillion won in tax revenues from last January through November, 9.1 trillion won more than the government's projection for all of 2021.  
 
There were four supplementary budgets totaling 66.8 trillion won in 2020 and two totaling 49.8 trillion won in 2021.  
 
 

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]
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