The Food Service Industry: "Government's 10 Billion Won Support Will Provide Some Relief"... Self-Employed Business Owners Show Optimism

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is speaking at the 'COVID-19 Response Economic Ministers' Meeting and the Meeting on Japan's Export Regulations' held on the 17th at the government Seoul office video conference room. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Lee Seon-ae] The food service industry has collectively welcomed the government's measures regarding the novel coronavirus infection (COVID-19).

An official from the Franchise Industry Association stated on the 17th, "The government's initiative to support the food service industry itself will serve as a signal to reduce the public's anxiety about COVID-19," adding, "It is expected to somewhat stimulate the demand for dining out domestically."

A representative from the Korea Foodservice Industry Association also said, "The industry is currently struggling and grasping at straws," and added, "The fact that the government is providing support is positive."

On the same day, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, held an economic ministers' meeting at the Government Seoul Office to respond to COVID-19 and announced support measures for the food service industry.

Deputy Prime Minister Hong explained, "We will expand the current 10 billion won scale of development funds for food service businesses and lower the support interest rate by 0.5 percentage points to 2-2.5%. We also plan to select and support the joint purchase project for food ingredients early."

The government will hold the Food Festa early to spread the dining and consumption atmosphere, and will also promptly promote the repair and modernization of major tourist facilities to improve conditions for attracting tourists.

Additionally, to revitalize consumption, the government plans to expand the issuance scale of local love gift certificates, currently capped at 30 trillion won, and relax the conditions for employment retention subsidies for affected companies to provide benefits.

Following the announcement of these government support measures, self-employed food service operators also expressed optimism. Mr. Kim, who runs a meat restaurant in Incheon, said, "Since February, sales have dropped by 60% without exaggeration, and the recovery seems slow," adding, "Although the support measures are somewhat delayed, I expect they will have effects such as boosting domestic demand."

Mr. Park, who operates a Korean restaurant in Dongdaemun, also emphasized, "If the government had not stepped in, more self-employed businesses might have closed due to this situation," and added, "I hope the situation quickly enters a stabilization phase so that the worries of self-employed people and small business owners can be alleviated."