Gov't mulls emergency support for bankrupt households

SEOUL, Dec. 15 (Yonhap) -- South Korea plans to provide emergency relief to bankrupt households and underprivileged families suffering from the current economic slump, a government official said Monday.

Temporary support could be given in the form of money needed to buy basic
necessities and cover education-related spending, according to the official who
declined to be identified.
The relief funds are to be offered to people who have filed for bankruptcy and
those that have fallen on hard times due to layoffs, accidents and illnesses, he
said.
After growing 5 percent in 2007, Asia's fourth-largest economy is expected to
grow around 4 percent this year. Economic growth is forecast to slow down further
to the 3 percent range, while some private think tanks are predicting 2 percent
gains.
Without going into details on the amount set aside by Seoul, he added measures
are being taken to ease requirements so more people can become recipients of
social security benefits compared to the past. The system has been criticized for
having loopholes that effectively prevented some people from getting help.
The government, meanwhile, said beside direct cash support, it will offer free
training courses so people can find employment and hold onto new jobs.
It will also expand earned income tax credit (EITC) from the original 130 billion
won (US$97.3 million) to 470 billion won in 2009. The amount is sufficient to
give help to 630,000 households.
The EITC system is designed to help people in low-income groups with subsidies
and tax benefits that can augment wages. It can act as an incentive for people to
find and hold onto work.