BILL TO ASSIST SMALL BUSINESSES PASSED

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The National Assembly has passed a bill on paying 3 million won to each of some 3.3 million small business owners. The rival parties have agreed to allocate 16.9 trillion won, 3 trillion won more than the government's initial plan.

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Compensation for small business owners makes up the largest share of the supplementary budget bill passed by parliament recently. Each small business owner who started their business before Dec. 15, 2021 and whose sales have declined will receive 3 million won regardless of sector. Some 3.3 million people including 100,000 simplified taxpayers who have difficulty proving that their sales have decreased will also be eligible for the compensation. Those who have already received compensation for business losses before can apply for the added compensation online without presenting certifying documents. You'd be able to apply online after receiving a related text message. The scope of compensation, a highly contentious point, has been expanded from 80 percent to 90 percent.

[Soundbite] Hong Nam-ki(Minister of Economy and Finance(Feb. 17)) : "The government wants to compensate small business owners as much as possible. I want you to know that we pondered this matter sufficiently."

Socially vulnerable citizens who have less work due to the pandemic are also eligible. Special-type workers and freelancers will receive up to one million won each. Drivers of corporate taxis and charter buses will get one million won first and 500,000 won more in contingency allowances. The virus prevention budget has also been expanded. Self-test kits will be provided to six million socially marginalized people. Those infected with COVID-19 and those in quarantine will be eligible for paid leave. The budget will be allocated using excess funds and contingency allowances. Government bonds worth 11.3 trillion won are to be issued as planned. The supplementary budget is expected to alleviate small business owners' woes in the short term. However, there are concerns it could push consumer prices even higher.

[Soundbite] Prof. Kim Sang-bong(Hansung Univ. Economics Dept.) : "Consumer prices will likely remain high in the second half of the year. The possibility of prices rising further due to the supplementary budget cannot be ruled out."

The government is to start providing the extra budget on Wednesday the 23rd after a cabinet meeting. Compensation for small business owners and contract workers is to be paid out from next month.