It's time for On-Point, where we speak to experts to delver deeper into some of the key issues in the spotlight right now. Following his pledge, President Yoon Suk-yeol and his administration have proposed an extra budget bill, worth 59.4 trillion won, or 46.1 billion US dollars. The bill aims to assist small businesses hit by the pandemic, providing business owners with 6 million won or roughly 47-hundred US dollars, regardless of their loss. In some cases payments may be as high as 10 million won or 78-hundred US dollars.
While the financial assistance should be of great help, there's the question of fiscal soundness, as South Korea continues to pile on massive debt. To get an expert's view on the extra budget bill, we connect with SHIN Sang-hyup, Professor of Economics at Kyunghee University. Good morning to you professor.
First off, the extra budget bill aimed at helping small business owners was, in some way, the first major task of President Yoon's new government. How do you assess this follow up on his election pledge?
The main controversy with the bill, is the 6 to 10-million won payments for all small business owners REGARDLESS of their losses. What's your take on this?
There's been a number of financial assistance packages made available to small business owners over the course of the pandemic. Some health experts say, there could be another resurgence in fall and winter, which could lead to anti-virus measures again. Can the government afford to continuously assist small business owners moving forward?
Some say, there may be a need for a long-term assistance plan, and not a one-time payout. What would be the best way to assist small business owners in the long term, without having to risk any fiscal pressure?
Thank you Professor for you insights. Looking forward to talking to you again.