The South Korean government has drafted an eleven-point-seven trillion won supplementary budget plan to cushion the novel coronavirus outbreak’s impact on the economy. 

The Cabinet plans to approve the budget plan on Wednesday morning. 

It is 100 billion won higher than the supplementary budget drawn up to cope with the MERS outbreak in 2015. However, budget spending directly related to the outbreak, eight-point-five trillion won, is two-point-three trillion won higher than the MERS-related expenditure. 

Under the plan, the government seeks to spend two-point-three trillion won on enhancing the nationwide quarantine system. It aims to secure more negative pressure isolation rooms and negative pressure ambulances, as well as testing and analysis equipment. Hospitals specialized in epidemics and virus research institutes will also be established.

The plan also reflects compensation for losses that medical institutions suffer from implementing government quarantine measures. In addition, the budget will support the living costs of COVID-19 patients who are hospitalized or in isolation.  

The government will also spend two-point-four trillion won to assist small business owners and small- and medium-sized enterprises. Four trillion won in loans, including two trillion won through the Industrial Bank of Korea, will be provided with cheap interest rates. 

Payment guarantee services for companies and exporters based in the hardest-hit areas, including Daegu and North Gyeongsang Province, will be increased by three trillion won. 

Another three trillion won will be earmarked to help stabilize the livelihoods of low-income families. Those receiving basic state stipends or childcare allowances will be given vouchers with which they can purchase necessities at local markets. 

Eight-hundred billion won will go to disinfection work at primary and secondary schools in regional areas. 

Aiming for its passage during the ongoing extraordinary session period that ends on March 17, the government will submit the bill to the National Assembly on Thursday.