Embargo: Release Date: March. 13, 2009
Contact Information: Int’l Media Relations Team, 02-2150-2450
Press Release
KRW6 trillion to Support Low-income Families
The Ministry of Strategy and Finance announced a plan yesterday to spend KRW6 trillion to support low-income families. The emergency aid package will provide temporary support for low-income households, offer public jobs, and extend loans, among other measures.
The measure was finalized at a meeting presided by President Lee Myung-bak and will go to the National Assembly for passage when it convenes next month. Of the KRW6 trillion to be spent in the emergency aid package, KRW5.73 will come from the supplementary budget, whose bill will be sent to the National Assembly, soon.
A portion of the aid package will provide KRW200,000 each month for six months to the poorest 500,000 households that are unable to work due to age or disability and whose incomes are less than the minimum cost of living.
The package will also provide 400,000 recently unemployed households, whose incomes are less than 120 percent of the minimum cost of living, with public works jobs and pay KRW830,000 in monthly wages for six months. Half of the wages will be paid directly in cash payments, and the other half in vouchers for traditional markets.
The government will also extend loans to 200,000 households that have assets between KRW85 mil. and KRW2 mil., but are making less than the minimum cost of living.
The average loan amount will be KRW5 million.
MINISTRY OF STRATEGY AND FINANCE
MINISTRY OF STRATEGY AND FINANCE
The emergency aid plan will also cut mortgage rates for state rental housing from 4.5 percent to 2 percent for low-income households and will cap the maximum student loan rate at 6.6 percent from the current 7.3 percent. College graduates in lower income
households who are seeking employment will be exempt from making student loan payments.
The number of basic welfare recipients will increase by 120,000 to 1.77 million and emergency state welfare support will add 80,000 recipients to cover 180,000 people.
