The government plans to provide six trillion won in emergency support to small business owners devastated by COVID-19.
First Vice Finance Minister Lee Eog-weon revealed the plan when he presided over a policy review meeting in Seoul on Friday.
Under the plan, the government will expand the amount of loans for people with bad credit scores by 200 billion won to a total of one-point-two trillion won and lower annual interest rates by point-four percentage point to one-and-a-half percent.
Also through the second extra budget, the government will provide four-point-two trillion won in “recovery funds” for small businesses and one trillion won compensation for these business owners.
Lee said the government will swiftly provide “recovery funds” from August 17 to more than one-point-three million business owners, or some 70 percent of nearly one-point-eight million applicants.
The government will begin to provide compensation from the end of October to small business owners who have suffered losses since July due to quarantine rules.