Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki on Aug. 26 speaks at the 44th meeting of the Emergency Economic Council at Government Complex-Seoul. (Yonhap News)

By Sarah Oqelee and Yoon Hee Young

Eighty-eight percent of the population will receive national support funds worth KRW 250,000 per person due to COVID-19.

The government aims to start distributing the funds before the Chuseok (Korean Thanksgiving) holidays that begin on Sept. 20.

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki on Aug. 26 announced the measures at the 44th meeting of the Emergency Economic Council at Government Complex-Seoul.

"The government aims to dispense 90% of recovery funds to small and medium businesses and entrepreneurs and national relief funds to the people before the Chuseok holidays. We will also increase the supply of microcredit loans through our contribution to the Korea Inclusive Finance Agency (KINFA)," he said.

The government earlier said it would discuss when to distribute the funds with quarantine authorities in consideration of the COVID-19 situation.

Under the plan, the funds are targeted at households in the bottom 80% of the income bracket but special standards applied to single and double-income households mean 88% of the population will receive the money.

Each member of a household will get KRW 250,000, or a combined KRW 1 million for a family of four and KRW 1.25 million for a family of five.

An estimated 20.34 million households will receive support funds worth a combined KRW 11 trillion, according to government projections.

The distribution of KRW 4.1 trillion in labor and children encouragement grants was moved up to the end of this month from late next month, and the supply of microcredit loans through a contribution to KINFA will be raised this year from KRW 7 trillion to 8 trillion to KRW 9 trillion to 10 trillion.

sarahoqelee@korea.kr