South Korea to move ahead with $40B coronavirus relief package

March 19 (UPI) -- South Korea is preparing to unleash nearly $40 billion in economic relief to help businesses and workers cope with the adverse effects of the coronavirus pandemic.

As more small business owners struggle with the steep decline in customers and revenue, South Korean President Moon Jae-in held his first emergency economic meeting with his cabinet, local newspaper JoongAng Ilbo reported Thursday.

"The present government will be switching to emergency government system mode," Moon said at the meeting.

Moon's administration has agreed to the $40 billion emergency aid package following the meeting, targeting heavily hit small businesses, as well as the self-employed, who are often the most vulnerable in times of crisis, according to television network MBC.

The package provides all South Korean banks access to $9.6 billion in emergency funds, which can be loaned to small business owners at a below-market rate of 1.5 percent.

Deadlines for the repayment of all business loans are also being extended by six months, and interest payments on all loans are being suspended for six months, according to MBC.

On Thursday, Moon said vulnerable groups that are suddenly finding themselves unable to pay for their living expenses will receive special attention.

"Consideration should be given for measures supporting people who have lost their income or lost their jobs," Moon said. "As the government's resources are limited, cooperation with local governments will also be necessary."

More South Koreans who work in sectors affected by new social distancing measures, including piano schools and taekwondo classes, are taking on jobs, such as package delivery, to make ends meet.

At airports around the country, about one out of five airline employees may have been placed on unpaid leave. Staff said they are apprehensive about whether their jobs will still be waiting for them in the event of two or more required "vacations," according to MBC.