Korean Government Unveils Plan to Help Businesses in Saving Jobs

South Korea will allocate 10.1 trillion won wage subsidies for small businesses, among the measures it would provide to support job retention.

Also included in the government plan is to provide programs for the unemployed, and inject liquidity to cash-strapped companies.

The plan was approved at the 5th Emergency Economic Council Meeting on April 22.

The wage subsidies that the government has set aside for the unemployed will benefit 2.86 million persons.

The plan includes 0.9 trillion won for 520,000 employees of small businesses and enterprises.

There would also be 3.6 trillion won to create 550,000 jobs for low-income groups and young adults; and 3.7 trillion won for job seeker benefits and job training programs that would benefit 660,000 job seekers.

Furthermore, 1.9 trillion won would be provided as an emergency relief fund for those outside the unemployment insurance. It would benefit 1,130,000 unemployed.

Of the 10.1 trillion won that would be allocated, 0.8 trillion won of government funds will be spent immediately, while the rest of 9.3 trillion won will require approval from the National Assembly.

The government will set aside a new package of over 75 trillion won as liquidity support for cash-strapped companies. The amount would be added to the more than 100 trillion won package announced on March 25.

The new package includes 10 trillion won to be added to support small businesses and enterprises; up to 20 trillion won to purchase low-rated corporate bonds, CPs, and short-term corporate debt; and up 5 trillion won for P-CBO support.

There would also be 40 trillion won to be set aside to help cash-strapped key industries.