The government had decided to make “emergency aid payments of 9.1 trillion won (6.7 billion euros) for 70 percent of households in the lower-income group”, the Ministry of Economic Affairs said on Monday after the third meeting of the “Emergency Economic Council”.
The value of the vouchers or online coupons depends on the size of the households in question. A one-person household can, therefore, expect 400,000 won and a family of four can expect one million won. The issue of vouchers is intended to ensure that consumption is boosted.
The majority of the planned payments are to be covered by an additional 7.1 trillion won budget. The rest are said to come from local governments. The decision to do so was not an easy one, President Moon Jae In was quoted by his office. However, people deserved compensation for the problems that would have resulted from the months of social distance and quarantine caused by the Covid 19 outbreak.
The supplementary budget is to be submitted to the National Assembly after the parliamentary elections scheduled for April 15.
South Korea had already decided last week to double aid to the pandemic-stricken economy to 100 trillion won. The rescue package is designed to protect companies, retailers and the self-employed from bankruptcy.