The Democratic Party and the government are currently in negotiations over the fifth supplementary budget since the Covid-19 outbreak. The plan is to reach an agreement this week so that it could be turned over to the National Assembly next month.
Less than a month after its third relief package, the ruling Democratic Party is pushing a fourth, playing with fiscal fire as the national balance sheet is already much strained and the economy not yet back on track.
A full 90 percent of the third round of relief grants will be distributed before the Lunar New Year holidays next month, Finance Minister Hong Nam-ki reaffirmed.
Businesses say that the next round of relief money, the third attempt by the government to keep small companies whole, will barely cover a month of rent.
The government will spend 9.3 trillion won on the third round of emergency coronavirus relief grants, giving up to 3 million won in cash to businesses forced to shut down and 1 million won to people with insecure jobs such as freelancers.
The ruling Democratic Party (DP) and the government agreed to hand out up to to 3 million won ($2,700) to small shops hurt most by the Covid-19 pandemic.
Only about 30 percent of the government's first emergency relief grants were used for consumer spending, the Korea Development Institute (KDI) reports.
Agreement came early on a budget for next year of 558 trillion won ($504.4 billion), which could be passed on Wednesday, the legal deadline.If so, it will be the first time in six years for the budget to be passed on time.
The main opposition party on Tuesday proposed slashing funding from President Moon Jae-in's Korean New Deal projects to pay for a third round of emergency relief grants as the country faces a resurgence of coronavirus infections — a plan that was...
As the Covid-19 crisis continues, the Moon Jae-in administration paid up to 1 million won ($844) in emergency relief grants to all Korean households in May. Now, the government has proposed its fourth supplementary budget of 7.8...