Seoul City Provides 1.4 Million KRW Cash Support to 410,000 Small Businesses with Annual Sales Under 200 Million KRW

Support for 'Survival Funds' to 7 out of 10 Self-Employed... Total Investment of 574 Billion Won

[Image source=Yonhap News]

[Asia Economy Reporter Jo In-kyung] The Seoul Metropolitan Government will provide emergency cash support of 700,000 KRW per month for two months as 'Self-Employed Survival Funds' to small-scale self-employed individuals and small business owners struggling due to the economic downturn caused by the novel coronavirus infection (COVID-19).

On the 23rd, Seoul Mayor Park Won-soon announced at a regular COVID-19 briefing, "We will invest a total of 600 billion KRW, providing 1.4 million KRW each to approximately 410,000 self-employed individuals and small business owners with annual sales under 200 million KRW."

Except for cash support to businesses whose operations have nearly ceased due to visits by confirmed COVID-19 patients, this is the first time nationwide that most self-employed individuals and small business owners will receive direct cash support continuously for two months, rather than gift certificates or financial aid.

Mayor Park explained, "For small-scale self-employed individuals and small business owners whose sales have sharply declined, we aim to provide direct cash support?not indirect support centered on loans?so they can use it for fixed costs such as rent and labor costs, thereby laying a 'survival stepping stone' to safely cross the current river of hardship without going out of business."

The target recipients are estimated to be about 72% of the approximately 570,000 small business locations in Seoul with annual sales under 200 million KRW, excluding certain industries such as entertainment, pleasure, and gambling.

To prepare this measure, the city listened to various voices from the field as well as proposals from small business organizations and experts. It concluded that an emergency measure of cash support is urgently needed for self-employed individuals and small business owners who have low loan repayment ability and find it difficult to receive government and city support such as disaster emergency living expenses.

The Seoul Self-Employed Survival Funds application will begin online in mid-next month, with offline applications starting in June. To receive support, the business location must be in Seoul, the business must have been operated for at least six months as of February 29 this year, and the business must still be actively operating at the time of application.

Mayor Park stated, "Not only Seoul but the entire Republic of Korea needs the nationwide introduction of self-employed survival funds to restore daily life and achieve a new leap forward. Therefore, we earnestly request discussions at the government and National Assembly levels."