Gyeonggi Province to Provide 230,000 Won Compensation in Regional Currency to Delivery Workers and Other Vulnerable Laborers

[Suwon Ilbo=Reporter Park No-hun] As COVID-19 cluster infections resurge mainly in the Seoul metropolitan area, Gyeonggi Province has launched emergency support measures with the Gyeonggi Mayors and County Governors Council for vulnerable workers and small business owners affected by COVID-19.

The measure follows Gyeonggi Province's principle of taking bold quarantine measures while providing appropriate consideration to businesses and workers who actively cooperate with quarantine efforts. The main focus is to provide vulnerable workers such as delivery workers who cannot work due to COVID-19 diagnostic testing with income loss compensation of 230,000 won per person in regional currency, and to provide special management funds and loan guarantees to small business owners who have suffered business losses from assembly ban orders. Funding is split 50% from provincial budget and 50% from municipal and county budgets.

Gyeonggi Province and the Gyeonggi Mayors and County Governors Council held an emergency press conference on June 4th to announce the "Support Plan for Vulnerable Workers and Small Business Owners Subject to Administrative Orders amid Prolonged COVID-19 Crisis."

Ahn Byung-yong, Chairman of the Gyeonggi Mayors and County Governors Council (Mayor of Uijeongbu), explained the rationale for the support: "The cluster infection at Coupang's logistics center in Bucheon clearly demonstrates the harsh working conditions faced by non-regular workers in our society. Moreover, as assembly ban administrative orders are prolonged, small business owners are facing economic difficulties with their businesses essentially at a standstill." Governor Lee Jae-myeong of Gyeonggi Province, Chairman Ahn, and other council officials including Pocheon Mayor Park Yun-guk, Dongducheon Mayor Choi Yong-deok, and Gwacheon Mayor Kim Jong-cheon attended the press conference.

The emergency support measures include providing "sick leave income loss compensation" to vulnerable workers for early diagnostic testing when they develop COVID-19 symptoms. Vulnerable workers include workers on less than 40 hours per week, day laborers, and special-form workers such as delivery workers, substitute drivers, and learning materials instructors. Gyeonggi Province and the council recognize that vulnerable workers often cannot easily take time off even when ill and inevitably come into contact with unspecified numbers of people, which results in spreading community infections. Accordingly, vulnerable workers will receive 230,000 won in sick leave income loss compensation once per person in regional currency for three days covering the testing day and the notification day, enabling them to get tested quickly and block early spread. Eligible individuals with suspected symptoms can apply for compensation after receiving diagnostic testing at a health center or screening facility, and the compensation will be provided after review. However, the condition is that individuals must comply with self-quarantine until test results are received. In addition, Gyeonggi Province and the council decided to support small business owners suffering from prolonged assembly bans through special management funds and loan guarantees. Special management funds are provided only to small business owners designated as assembly ban targets for more than two weeks. Depending on the assembly ban period, they can receive 500,000 won for two weeks or 1,000,000 won for four weeks in regional currency. For small business owners subject to assembly ban orders who need operating capital but face loan restrictions under current regulations, loan guarantee support is provided. Small business owners classified as entertainment establishments or similar businesses could not obtain guarantees and loans from credit guarantee foundations or financial institutions. Gyeonggi Province and the council are in talks with relevant institutions to enable such businesses to obtain loans through Gyeonggi Province's primary banks such as NH Bank and Shinhan Bank under guarantees from the province and Gyeonggi Credit Guarantee Foundation. Previously, the province submitted a request to the central government, including the Ministry of SMEs and Startups and the Financial Services Commission, on June 29th to temporarily remove guarantee restrictions and loan restrictions for entertainment establishments.

Furthermore, Gyeonggi Province and the council are preparing measures to lift assembly ban orders on the condition that quarantine rules are followed. When a business that complies with the prerequisites set by Gyeonggi Province regarding quarantine rules applies for lifting of the assembly ban order, a separate review committee will be established to determine whether to lift the order through review.

Council Chairman Ahn Byung-yong emphasized: "With prolonged COVID-19, suffering continues across our society, and infectious disease attacks the most vulnerable parts of our society first. We will seize this crisis as an opportunity to carefully identify and address the issues of vulnerable workers and small business owners revealed by COVID-19."