Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol said Tuesday that the government would soon announce a support plan for vulnerable borrowers, including measures to expand debt restructuring, provide medium-term low-interest financing and broaden the supply of financial services for low-income households.

President Lee Jae Myung speaks with Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol at a Cabinet meeting held at Cheong Wa Dae on Tuesday. [Yonhap]
President Lee Jae Myung speaks with Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol at a Cabinet meeting held at Cheong Wa Dae on Tuesday. [Yonhap]

Koo made the remarks while briefing the Cabinet meeting at Cheong Wa Dae on emergency state management and response measures related to the war in the Middle East. He said the government was "exploring comprehensive, multi-pronged support measures, including easing the management burden on small business owners, strengthening ties with local commercial districts and providing assistance for business recovery."

Koo said that while card sales data showed spending rising at department stores, supermarkets and convenience stores, the sentiment index among small business owners remained low. "The pace of consumption recovery in neighborhood commercial districts is sluggish, and with interest rates rising, small business owners are expected to face greater difficulties — so we will concentrate our policy efforts there," he said.

The government also plans to address supply chain instability stemming from the Middle East war. It will accelerate early crude oil imports via alternative shipping routes and reactivate strategic reserve swap arrangements. The government also plans to extend emergency supply-and-demand adjustment measures for naphtha and petrochemical products. Koo said the ninth round of maximum oil price controls had been frozen in light of recent crude price conditions.

A series of youth employment measures is also in the pipeline. The government plans to finalize and announce a youth job recovery package by the end of this month, and will focus policy efforts on boosting youth employment through the revitalization of venture investment. Alongside this, recruitment for the second round of a startup support project will open, with applications accepted through Sept. 17.

Ahead of the Chuseok holiday, the government will also roll out measures to ease price pressures and household burdens. A package covering discount support and expanded supply of seasonal goods, as well as reductions in vacation and transportation costs, is set to be announced in early September.


y2k@heraldcorp.com