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Korea's 4th disaster support fund, Seoul settlement vitality fund, small business owners, vulnerable groups, and victims 6.5 million won in compensation for damage up to 20 million won in interest-free loans 500,000 unemployed young people

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Seoul Metropolitan Government - 25 districts - Group 1 'Disaster Support Fund to Overcome Crisis' will accelerate the spring of the people's livelihood

 - 12 projects in three major areas (small business owners, vulnerable groups, and victims) by investing a total of 500 billion won in the city and district.

 - Strong support considering the characteristics of Seoul with high operating damage and fixed costs and supplementing blind spots for government support.

 - Up to 1.5 million won for prohibited/restricted industries...Closing 'damage support' up to 20 million won 'interest-free loan'

 - To 170,000 unemployed young people, the first "employment incentive" of 500,000 won is provided, and the "living subsidy" for the vulnerable low-income class is provided additionally.

 - Support tweezers in the affected industries such as village bus transportation workers, local children's centers, and nursing facilities for the elderly



□ The Seoul Metropolitan Government will invest a total of 500 billion won in 25 autonomous districts to support "crisis-overcoming disaster support" for small business owners, vulnerable groups and victims who are suffering the most from the prolonged Korona 19. A total of 1 million companies and individuals (about 335,000 companies, 700,000 citizens) are eligible for the benefit. The actual amount of support, including loans, is a total of 1 trillion won. Starting as early as early April, payments will be made sequentially by target.





□ The Seoul Metropolitan Government has finalized 12 projects in three major areas under the direction of 'selective' and 'direct' support (see Appendix 1). The goal of Seoul is to take preemptive and bold quarantine measures from the beginning of the spread of Corona, which resulted in greater business damage than other regions, and to provide thicker support as there are specialties with high fixed costs such as rent. The government will also closely fill blind spots that have not been included in the government's fourth disaster aid package.



□ Small business owners who suffered the most severe damage increase the density of support. Apart from the government's fourth disaster support fund, 275,000 businesses will receive an additional 1.5 million won in "Seoul Economic Vital Fund" and 500,000 won in "damage support" to small business owners who are not included in the fourth disaster support. It will also provide interest-free loans" for small business owners in all autonomous districts for the first time." With a maximum limit of 20 million won, a total of 25,000 people are expected to benefit.



□ 170,000 unemployed young people who are staying unemployed due to Corona but have not been able to support them will be provided with 500,000 won in "employment incentives" per person. About 450,000 people who are vulnerable to low-income households, including basic living beneficiaries, will be provided with an additional 100,000 won in "living support" per person.



□ It will also operate tweezers support measures for affected industries. The government will provide 500,000 won in "damage support" to about 30,000 people, including village, jeonse, and airport bus transportation workers, who are threatened with a decrease in passengers. It will also provide nursing facilities for senior citizens (up to 1 million won) who have difficulties due to high-intensity quarantine measures, local children's centers (1 million won) whose operating costs are increasing due to emergency care, and daycare centers (1 million won).



□ The Seoul Metropolitan Government said the measure is significant in that it has been prepared with vivid voices from 25 autonomous district sites at the interface of citizens' lives. After several rounds of consultations, it selected targets for support and confirmed the size of support. 25 autonomous districts will invest 200 billion won and Seoul will invest 300 billion won.

  ○ On February 25, the Seoul Mayor's Council announced that 25 autonomous districts would raise 200 billion won in funds and ask the Seoul Metropolitan Government to draw up subsidies larger than the size of the autonomous districts.

  ○ Since then, the Seoul Metropolitan Government and the autonomous districts have discovered 28 projects through a total of four meetings and selected the final project under the direction of directly and substantially thickening selective support for the victims and vulnerable.



□ The three major areas of 'disaster subsidies for overcoming crises' are the small business owners and vulnerable groups.

  ○ This is the third measure to support the people's livelihood this year, following the "800 billion won low-cost loan" and the "five major warm-up measures for the people's livelihood economy" (1.5 trillion won). Since the nation's first confirmed person was released on January 20 last year, the Seoul Metropolitan Government has drawn up an extra budget four times last year alone and spent about 6 trillion won, including state funds, on overcoming Corona.



<Up to 1.5 million won for prohibited and restricted industries…Closing 'damage support', up to 20 million won 'interest-free loan'>

□ First, 275.3 billion won, the largest amount, will be invested to support small business owners and self-employed people, who were hit hard by the prolonged Korona. In addition to the government's fourth disaster support fund, small business owners in the prohibited and restricted industries will additionally support up to 1.5 million won in "Seoul Economic Vital Fund" and provide "damage support" for small business owners. It will also start providing "interest-free" loans up to 20 million won to 25,000 small business owners in all autonomous districts.



① Seoul Economic Vitality Fund: 600,000 won to 1.5 million won will be paid to 275,000 companies in the prohibited and restricted sectors with relatively greater damage among the government's fourth disaster support fund. The plan is to maximize the effect with stronger support considering the high rents and prices of Seoul compared to other regions. A total of 198.9 billion won will be invested.

  ○ The amount of support will be up to 1.5 million won for 'no aggregation' industries and 600,000 won for 'no aggregation' industries compared to government subsidies. For example, 'no aggregation' industries such as indoor sports facilities will receive a total of 6.5 million won, adding 5 million won in government disaster aid and 1.5 million won in "Seoul Economic Vitality Fund." The "collective restriction" industries such as cafes and restaurants receive a total of 3.6 million won, adding 3 million won in government disaster support and 600,000 won in "Seoul Economic Vitality Fund."

  ○ The city plans to receive the application through a separate guidance process to small business owners who have received the government's fourth disaster support fund. Specific application and payment schedules are flexible according to government schedules.



② Small business owners' damage support fund for the closure of the prohibited/restricted industries: 500,000 won per business shall be paid to small business owners who have closed their businesses due to the prolonged corona. stay in business for more than 90 days About 48,000 people in the collective prohibition and restriction industries that have been closed since March 22 last year, when strengthened social distancing began. A total of 24 billion won will be invested. The government's 're-challenge incentives' can be duplicated.



  ○ Although small businesses are frequently closed due to the prolonged Korona, small business owners who closed their businesses due to collective bans and restrictions did not receive proper support as most of the small business damage support such as disaster support funds were targeted only.

  ○ Applications will be carried out sequentially as soon as they are prepared for each autonomous region (project announcement will be made for each autonomous region). For more information, contact the competent district office where the closed business is located.



③ Support for interest-free loans for small business owners: A total of 500 billion won worth of "interest-free" loans will also be provided for small business owners who desperately need to transfuse emergency funds for management stability. A total of 25,000 people can receive support from all 25 autonomous regions, and up to 20 million won can be lent without interest for a year (0.5% guarantee fee and 100% guarantee rate).

  ○ This support is a project actively proposed by 25 autonomous districts collecting voices from the site, and the entire loan interest for interest-free benefits will be paid by the autonomous districts. Specific qualifications will be determined through an agreement between the autonomous region and the Seoul Credit Guarantee Foundation. For more information, you can contact the district office where the company is located.



<Additional support for 170,000 unemployed young people with the first "employment incentive" and "living support" for low-income vulnerable people>

□ Second, 135.1 billion won will be invested in supporting vulnerable groups. The employment situation is serious as more than one in four young people is virtually unemployed due to the Korona19 employment shock, but the government will pay the first "employment incentive" to unemployed young people who were relatively alienated from the government disaster support measures. It will provide additional "living support" to low-income vulnerable groups, such as basic living recipients, who are facing a deepening livelihood crisis.





④ Job incentives for unemployed young people: 500,000 won will be paid to all unemployed young people (aged 19-34) within two years of graduation as a local love gift certificate (Zero Pay). About 171,000 people will be supported as a measure to promote employment and job openings for young people who lost their jobs due to Corona 19 or did not even cross the threshold of employment.

  ○ A total of 86.8 billion won will be spent, and 25 autonomous districts will draw up their budgets through extra budget. Application and payment of employment incentives will be carried out sequentially after each autonomous region completes the system, such as ordinances, etc. (project announcement will be made by each autonomous region).

  ○ Specific support targets are young people who are not covered by employment insurance between the ages of 19 and 34 and who live in Seoul under resident registration and are within two years of graduation. However, participants in unemployment benefits and participants in the "Youth Job Activity Support Fund (National Employment Support System)" of the Ministry of Employment and Labor in 20 years and 21 years are excluded from the list.



저소득 Support for "living support" for low-income vulnerable groups: Cash supports of 100,000 won per person to 460,000 basic living recipients (national, Seoul-type), second-tier families, and legal single-parent families. A total of 48.3 billion won will be invested. Subjects will be confirmed for each autonomous district without separate application process, and will be deposited into representative accounts for each household in April.



  ○ With the Korona 19, the demand for income conservation is growing for low-income vulnerable groups as the number of employed decreases and income polarization intensifies, especially among the vulnerable, temporary and daily workers. However, the government's livelihood support system is lacking for vulnerable people with low income levels in the first place, as strict income and property standards are applied to households whose income has decreased due to corona.



<Pinset support for affected industries such as village bus transportation workers, local children's centers, and nursing facilities for the elderly>

□ Third, it will also provide tweezers on industries and facilities that are suffering from increased damage, such as local children's centers, village bus transport workers, and senior nursing facilities, which have seen a sharp drop in passengers due to increased telework.



□ Subject to support are 1,036 elderly nursing facilities 지역 429 local children's centers , 28,996 village buses, corporate taxis, chartered buses, airport buses 개소 139 village bus companies 0 5,081 daycare centers 만 10,000 cultural and artist ▴ 5,000 small business owners in the field. A total of 42.4 billion won will be invested.



어르신 Elderly nursing facilities: 500,000 won to 1 million won will be newly provided for each facility with strong quarantine measures such as mandatory pre-emptive examination of workers due to the nature of the facilities with many high-risk groups.

 

A total of 900 million won will be invested. A total of 1,036 facilities (senior care facilities, elderly care younger siblings, day and night protection facilities, and short-term protection facilities) are eligible for the support.



  ○ 500,000 won will be provided for elderly nursing home and short-term protection facilities, 1 million won will be provided for elderly care facilities and day and night protection facilities, and it will be used as expenses related to the prevention of Corona 19.

  ○ As the number of elderly nursing facilities has been restricted from operating the facilities due to the corona, the number of users has decreased, and additional operating expenses have been spent due to facility quarantine. In addition, the fatigue of workers is accumulating due to strong quarantine measures such as mandatory pre-emptive inspection of workers.



지역 Local Children's Center: It will also support the "Local Children's Center" for the first time, which is increasing the operating hours due to the emergency care of Corona 19. A total of 429 locations in Seoul will be provided with 1 million won per opening to create a stable care environment.

  ○ The local children's center is a facility that provides comprehensive care services to children in need of after-school care. As the number of classes has been reduced due to the spread of Korona 19, emergency care has been provided since late February last year. Before Corona, it was opened in the afternoon after school, but the operation time increased significantly as it began operating in the morning.

  ○ The subsidy shall be used not only for the prevention cost, but also for the overall operation cost of the facility, such as labor costs, management costs, program costs, meals and snacks. Its goal is to improve the quality of care services through stable operation of facilities.



운 Transportation employee damage support: 500,000 won per person will be paid to transportation workers who have been in blind spots for support, although they are threatened with their right to survive due to reduced passengers and worsening management. A total of 28,996 people are eligible for village, jeonse, airport buses and corporate taxi transportation.



  ○ Subject to support are transportation workers who are working at a registered corporation in Seoul Metropolitan Government. In the case of village bus, chartered bus, and airport bus transportation workers, they shall work at the relevant corporation for at least three months as of the date of public announcement (*Schedule, submission documents, methods, etc.) The subsidies for corporate taxi drivers will be announced separately in April. Provided, That if similar support is received from other local governments, the Seoul Metropolitan Government support shall be excluded to prevent duplicate payments.

  ○ Unlike city buses that are operated on a semi-public basis that subsidize operating expenses with the city budget, the village, jeonse, and airport buses were in blind spots because there was no additional support even if there were fewer passengers.

  ○ The number of passengers decreased by 40% in March and December last year, and the number of passengers on charter buses decreased by 26% due to the cancellation of various meetings and business events.



마을 Village bus company: As passengers are reduced by nearly 30% apart from village bus transportation workers, a total of 139 village bus companies in financial difficulties will also receive 10 million won per opening. The intention is to support stable operation so that there is no inconvenience in using citizens by closing the route or reducing the number of operations.

  ○ The Seoul Metropolitan Government funded the village bus industry by compiling an additional 11 billion won to provide emergency financial support for Korona 19 damage in 2020, but due to the prolonged Korona 19, the number of users decreased by 27% (115 million) last year. As a desperate measure to prevent bankruptcies and closures due to the decrease in the number of passengers, each autonomous region is increasing inconvenience to citizens by reducing the number of trips by an average of 17% and up to 30% for 175 out of 249 village buses.





어린이 Emergency operation support for daycare centers: 1 million won shall be provided to daycare centers. The long-term leave under Corona 19 has reduced the quota, resulting in a decrease in the income of childcare fees, while operating expenses for emergency childcare continue to be spent. 5,081 daycare centers, including state-run, private, and households, excluding workplace daycare centers, will receive support. A total of 5.1 billion won (100 percent) will be invested.

  ○ The subsidy is expected to help provide a stable childcare environment for daycare centers by allowing them to use it for maintaining employment, improving meals and snacks, and preventing corona. However, facilities that have no financial children or are suspended from operation as of the date of payment, and facilities that have received administrative measures, will be excluded from this support.



문화 Emergency disaster support for culture and artists: A total of 10 billion won in emergency disaster support will be provided to 10,000 people for culture and artists who face an unprecedented livelihood crisis due to the cancellation of exhibitions and performances.  

  ○ Subject to support are artists with a median income of 120% or less who have a certificate of artist activity through the Artist Welfare Foundation. Applications for each autonomous district will begin from the end of March, and disaster support funds will be paid after screening.



관광 Seoul Tourism Recovery Leap Fund, a small business in the field of tourism and MICE: 5,000 small business owners will be provided 2 million won separately from the government disaster support fund for the tourism and MICE industry, which had the worst year of the year. Adding government support is the equivalent of the prohibited industry. It is the second direct support measure this year after the government started providing emergency survival funds for the Seoul tourism industry earlier this year.



  ○ Support standards, documents, and application period will be announced on the website of the Seoul Metropolitan Government and the Seoul Tourism Foundation around mid-April. You can apply online on the website of the Seoul Tourism Foundation (http://www.sto.or.kr).

  ○ If any of the Seoul-based tourism and MICE companies registered and designated under the relevant law correspond to the requirements of small business owners (sales, number of regular workers), they can receive support if they are qualified after submitting evidence. The submission documents will be minimized to check whether tourism and MICE businesses are registered and designated under the Tourism Promotion Act or the Exhibition Industry Development Act, and sales and employment requirements.

  ○ If the previous support focused on filling the gap for small businesses with more than five people excluded from government support, the key point of this "Seoul Tourism Recovery Leap Fund" is to provide more government support to small business owners with fewer than five people.



□ Acting President Seo Jeong-hyeop said, "We will focus all our capabilities on restoring the people's livelihood in an emergency situation due to the prolonged Korona 19." "Seoul and 25 autonomous districts will once again cheer up to meet a time of hope." We will speed up the spring of the people`s livelihood.







Attachment 1. Overview of disaster support fund to overcome crisis

     2. Seoul Economic Vitality Fund 3. Support for small business owners 4. Support for small business owners without interest 5. Payment of low-income vulnerable people 6. Support for unemployed young people 8. Support for daycare centers 9. Support for village bus companies 11. Support for drivers.

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