SEJONG -- South Korea will provide 1.5 trillion won ($1.2 billion) in subsidies to temporary workers who lost their jobs due to the coronavirus pandemic, Finance Minister Hong Nam-ki said Thursday.

The move is the government's latest measure to protect the nation's job market as the pandemic is expected to force an economic contraction this year.

Temporary or freelance workers who lost their jobs will be eligible for the subsidies, and they will receive a total of 1.5 million won each, Hong said.

About 930,000 people who recently lost jobs will be eligible for the subsidies, Hong said.

The government has pledged to launch a "Korean-version New Deal" project to create jobs and prepare for a post-COVID 19 economic recovery.

Hong said the project will include industrial sectors on data, 5G telecommunication and artificial intelligence.

The government has hinted at easing regulations to promote remote health care, remote education, online businesses and others that can be run without contact. 

The National Assembly has approved a 12.2 trillion-won extra budget to fund emergency handouts for households to cope with the economic impact of the coronavirus outbreak.

South Korea's economy shrank 1.4 percent on-quarter in the first quarter of the year, marking the sharpest quarterly contraction since the last three months of 2008.

South Korea has promised relief packages worth some 240 trillion won to ease the economic fallout from the virus. (Yonhap)