Economic Bulletin | KDI 경제교육·정보센터

Policy Issue

2017 Supplementary Budget Plan

The government submitted its 11.2 trillion won supplementary budget proposal to the National Assembly on June 7, which focuses on creating jobs, expanding job markets and supporting the working class. The country’s fiscal conditions are sound enough to afford the 11.2 trillion won supplementary budget spending without issuing debt: The 11.2 trillion won will be made up of government surplus from last year (1.1 trillion won), tax revenue increase (8.8 trillion won) and surplus in national funds (1.3 trillion won). Create jobs (4.2 trillion won)Public sector-Add 12,000 jobs in the public safety sector, such as policemen, firefighters and public safety specialists-Add 24,000 jobs in social services sector, such as daycare teachers and elderly care providers-Add 30,000 jobs for the elderlyPrivate sector-Work to increase as many as 15,000 regular jobs in SMEsby providing wage support for every three employees: Qualified SMEs, including those working on new growth engines, will be made eligible for the support that provides up to 20 million won per year forevery threeemployees for up to three years. The government will begin the support with 5,000 SME employees.-Increase government’s young startup funds by 500 billion won, and promote developing new ideas into a business such as through the Tech Incubator Program for Startups-Help businesses free from joint surety by providing the Korea Credit Guarantee Fund and the Korea Technology Finance Corporation with financial support-Launch a fund worth 300 billion won to help businesses retry after failure-Raise funds for the fourth industrial revolution to accelerate job creation in new growth enginesLocal economy-Promote local economies throughurban restructuring projects and develop local economy-specific job creation models-Fund projects that have been suspended due to shortages in fiscal resources, such as irrigation systems repair projectsExpand job markets (1.2 trillion won)-Adopt a young job seeker allowance, and encourage young SME employees to keep their jobs by increasing government’s matching funds to their asset building accounts -Strengthen job training programs and employment services for women who want to return to work-Double the amount of parental leave allowance to 80 percent of the average paycheck and also double the number of public daycare centers-Launch a retiree-young adult joint startup program where participants can share what they are good at, such as experience of the elderly and new ideas of the young-Support small businesses: Provide financial support, and help them retry or find jobs if they failSupport the working class (2.3 trillion won)-Increase support for dementia: Increase dementia care centers by 205 to 252 nationwide, as well as increase hospitals specializing in the disease by 45 to 79-Expand basic social security beneficiaries by 41,000: Elderly and disability benefits will be increased -Provide young adults with affordable rental housing, which will have an easy access to public transportation-Equip elementary schools nationwide with fine dust monitoring devicesSupport local governments (3.5 trillion won)-Subsidies for local governments (1.7 trillion won)-Subsidies for local government education spending (1.8 trillion won)

Jun 2017