Gyeongsangbuk-do Gov. Lee Cheol-woo gives a speech at a meeting of the COVID-19 Central Countermeasure Committee at Gyeongsangbuk-do on May 8. (Photo: Gyeongsangbuk-do)

Gyeongsangbuk-do provincial government submitted to the provincial council a second supplementary budget proposal on May 8 with an increase of 718 billion won to execute the government’s plan to cope with the spread of COVID-19, stabilize public livelihoods and revitalize the economy.

The second supplementary budget proposal amounts to 10.96 trillion won, a rise of 718 billion won, up 7 percent, from the established budget of 10.242 trillion won.

It is the first time that the provincial government submitted a second supplement budget bill in 40 days after a first supplementary budget measure was proposed - twice in the first half of one year.

The latest supplementary budget proposal sets aside 671.3 billion won in emergency disaster support funds, 31.6 billion won in projects to support mom-and-pop stores and businesses buffeted by the spread of the novel coronavirus, and an additional 6.7 billion won in disaster emergency livelihood costs.

Gyeongsangbuk-do Gov. Lee Cheol-woo said, “The supplementary budget measure is a one point supplementary one, and we’ll spearhead efforts to overcome hard times, caused by the coronavirus by mobilizing all administrative power until the regional economy is restored while sharing hardships with provincial people.”

Meanwhile, Gyeongsangbuk-do’s 10 special projects to rescue SMEs and mom-and-pop businesses grappling with economic fallout caused by COVID-19 turned out to yield bountiful outcomes.

At an early stage of the pandemic, the provincial government inaugurated an economy task force, headed by the vice governor in charge of economic affairs, which explored and implemented policies to stabilize management of regional SMEs and small businesses.

With the top priority attached to stabilizing the management of small businesses with sharply declining sales, and supporting SMEs whose operation and exports were disrupted due to COVID-19, the provincial government is mobilizing its administrative capacities to restore the regional economy by readjusting the established budget despite a lack of financial resources.

Currently, a special project to support SMEs and small businesses is evaluated to play essential roles in stabilizing their management and reinvigorated the regional economy in conjunction with the government’s project to provide livelihood stabilization funds. The project is one of the 10 projects classified and implemented by the provincial government.

First comes the swift provision of unprecedented financial support. To this end, Gyeongsangbuk-do has successfully infused 1 trillion won for SMEs and mom-and-pop businesses.

SMEs have received loans with an annual interest rate of 4 percent support while mom-and-pop store businesses are financed as early management funds with preferential credit guarantees.

Unpaid furloughed workers, specially employed workers and freelancers who suffer hard times, are having their livelihood costs covered. The “Gyeongbuk Sales Festa,” a project to promote one-line marketing of products of SMEs grappling with sagging sales, achieved 9.6 billion in sales in two weeks after the launch of the project.

The provincial government also implement export “SOS” projects like export logistics cost support, cyber negotiation sessions and the provision of export insurance fees.

Gov. Lee said, “Provincial people suffer from many hardships in an economic crisis, caused by COVID-19, so I will see that any single SME and mom-and-pop businessman will not be excluded from special support project beneficiaries, and I will redouble efforts to overcome the economic crisis and make the economy of Gyeongbuk bounce back.”

Gyeongsangbuk-do Selected to Implement State-Financed Projects to Stabilize Employment

The provincial government will to create 6,800 good jobs over the next five years in cooperation with Gimcheon City, Gumi City and Chilgok Country to overcome an employment crisis caused by the relocation large-sized companies, the sagging electronics industry and economic fallout of COVID-19.

Gyeongsangbuk-do signed an MOU with the Ministry of Employment and Labor, Gimcheon City, Gumi City and Chilgok County to finance 55.8 billion won for five years at the provincial government on May 1.