South Korea launches third round of emergency cash reliefs

The finance ministry plans to hand out 4.1 trillion won (US$3.7 billion) in emergency cash to people affected by the third wave of the coronavirus.
By: | January 13, 2021

The handouts will benefit about 2.5 million small business owners, freelancers and self-employed individuals. The ministry of economy and finance will notify the beneficiaries via text messages that they are eligible for the government’s third round of the cash handout. 

The beneficiaries, who have been adversely affected financially by the pandemic due to stricter social distancing regulations, will be able to receive the cash in one or two days if they apply online upon receiving the text message.  

The government intends to complete the distribution of the handouts by the end of this month. 

Private education institutions, restaurants and karaoke rooms and other businesses that were required to temporarily close after November 24th can expected to receive either 2 million won (US$1,829) or 3 million won (US$2,743), depending on the extent of disruption to their operations. 

READ: South Korea to increase investment in startups in 2021

Establishments that have revenues of less than 400 million won (US$365,779) last year and saw sales drop compared to their 2019 earnings are eligible to receive 1 million won (US$914,450), said The Korea Herald. 

Freelancers and special contract labourers who were notified via text messages last week, will start receiving the cash subsidy this week. Special contract labourers are defined as those who make profits off small tips, such as delivery workers and golf caddies, according to the government.