South Korea passes $49.5 billion extra budget ahead of local elections | Business & Economy

The supplemental budget will support small businesses and self-employed individuals affected by pandemic restrictions.

South Korea’s National Assembly on Sunday approved a 62 trillion won ($49.5 billion) supplementary budget aimed at supporting businesses hit by pandemic-related restrictions.

The approved amount is 2.6 trillion won ($2 billion) more than the approved amount 59.4 trillion won announced last month and will primarily be used for cash handouts to small businesses and self-employed individuals to cover Losses due to COVID-19 restrictionsthe Ministry of Finance said.

The additional payout comes after South Korean President Yoon Seol-yeol pledged to compensate 5.5 million small business owners for losses caused by the pandemic shortly before taking office on May 10.

The extra budget also comes from the country’s local elections on June 1, when South Koreans will vote for mayors and provincial governors.

In a statement, the ministry said it would not issue any bonds to fund the budget, but would use tax revenue from existing spending plans.

South Korea lifted nearly all epidemic restrictions in April, including a curfew on bars, restaurants and cafes, as part of the country’s move toward living with the coronavirus.

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