The South Korean government is allocating a total amount of KRW1.74tn ($1.47bn/€1.22bn) for next year’s budget in assisting a help for the recovery of the sports sector from the devastating effects of the COVID-19 pandemic.
The country’s Ministry of Culture, Sports and Tourism was the one who announced planning to allocate extra funds for upcoming international sports events that said to be hosted in
the country, to support further research and development in the sports sector, the construction of a national sports center, and mainly to support the sports industry.
Moreover, the assistance for the damaged ecosystem will be initiated utilizing a sports industry loan project, which will be giving support on the operation of the private sports facility companies. The funds intended for the project will be increased from supposed to be an amount of KRW66.2bn in 2020 into a total budget of KRW106.2bn in 2021 to strengthen and build up the competitiveness within the said industry.
In order to continuously sustain the jobs in the sports sector, the office of the Ministry said that it will provide help for the small companies overcoming the damage that COVID-19 had brought to the industry. This means building 660 sports facilities and training 1,000 people.
Another primary thing that the government has considered is the allocated budget for the support of the 2022 Jeonbuk Asia-Pacific Masters Games and the preparation of the 2024 Gangwon Winter Youth Olympics in the country.
Additionally, each sport that will participate in the 2020 Tokyo Summer Olympic and Paralympic Games will be receiving financial support from the 2021 budget. These include the operation of an intensive management team as well as specialist training to ensure that every athlete can be able to safely participate in the upcoming Games.
For the first time, the Ministry’s research and development budget for the year 2021 will also be exceeding a total amount of KRW100bn, with a sum budget of KRW112.9bn that will be supporting the development of the country’s technology-based sports industry.
Meanwhile, the cabinet addressed on September 1, that the next year’s budget would be at KRW 555.8 trillion.
The sum amount is more than 8.5 percent compared to this year’s figure and said that it increases up to 1.6 percent if the three rounds of the supplementary budget of 2020 will be included in the computation.
Accordingly, next year is said to be marking the second straight year of the country’s budget deficit as overall expenditures (KRW 555.8 trillion) are expected to surpass the revenue (KRW 483 trillion).
The rise of 8.5 percent deducted with a 0.3 percent increase in imports will much likely have a net budget increase of 8.2 percent, the largest amount recorded in history.
Allocated funds of KRW 46.9 trillion will be intended in phasing out the criteria to support dependents, to expand the health and medical security of those unprivileged, to enforce free high school education, and bolster the four social safety nets of livelihood, health care, housing and education, and to boost the supply of public rental housing.
The Green New Deal will be receiving a sum budget of 8 trillion, the Korean New Deal will be receiving a sum amount of KRW 21.3 trillion, the Digital New Deal will be receiving a sum budget of KRW 7.9 trillion, and for the boost of social and employment safety nets a total of KRW 5.4 trillion.
Another allocated budget of KRW 8.6 trillion will be putting intended to safeguard the two million jobs and creating more in order to overcome the employment crisis that is caused by the COVID-19 pandemic
Furthermore, a sum budget of KRW 20.7 trillion will be given as support for the youth employment and startups, housing, and the foundation of housing and financial assets to assist the welfare customized for young adults as well as the educational ladder. This budget is called with its nickname as the “package of hope.”
A total budget of KRW 1.8 trillion was said to be intended purposely for the quarantine. And worth KRW 2.6 trillion was intended purposely for the prevention of damage caused by floods, avalanches, and storms
The allocated project budget for balanced national development will be a sum of KRW 16.6 trillion and said that it will be coming from next year’s budget.
The funds will be used for the completion of basic road maps for a number of 13 social overhead capital projects, that include a southern inland railroad, and the construction will be established in six places which included on the project is a sightseeing road along the portion of southwest coast.
During the briefing, Deputy Prime Minister and Economy and Finance Minister Hong Nam-ki said that next year’s budget indicates the government’s firm objective for the recovery of the economy. As high as possible it could be within the permissible range, the budget will be set higher and much higher.