"Small Business Owners 'Boiling' Over: 'We Didn't Even Get the 2nd Disaster Relief, Now There's Talk of a 3rd'"

"Unable to Explain Special Reasons, Payment Delayed Over a Month"
"Not New Hope Fund but Hope Torture Fund"
Rapid Progress in National Assembly Discussions on '3rd Emergency Disaster Relief Fund'

On the 23rd, one day before the social distancing level in the Seoul metropolitan area is raised to Level 2, a notice about temporary closure due to COVID-19 is posted at a store in Myeongdong, Jung-gu, Seoul. Photo by Mun Honam munonam@

[Sejong=Asia Economy Reporters Kim Hyun-jung, Kim Hee-yoon] "They said they would give the New Hope Fund before Chuseok, but I still haven't received it, and now they're talking about the 3rd disaster relief fund. It's unbelievable."

While discussions on the 3rd emergency disaster relief fund payment plan are rapidly progressing mainly in the National Assembly, some small business owners have yet to receive the New Hope Fund, which is equivalent to the 2nd disaster relief fund. Although payments have generally been completed in Seoul and the metropolitan area, in some regions, administrative issues have delayed the procedures. Some critics say it is "not New Hope but hope torture."

According to a compilation of Asia Economy's coverage on the 26th, the application and registration for the small business owners' New Hope Fund, which closed on the 13th of this month, has not yet been fully paid to applicants as of this day. According to the Ministry of SMEs and Startups, the main department in charge, from September 24 to October 8, a total of 24.594 trillion KRW was paid to 2.24 million small business owners. This means about 7% of the total target (2.4 million) have not yet received the support funds. The government prepared a 4th supplementary budget to support small business owners whose sales have sharply declined due to the COVID-19 pandemic and the resulting strengthened social distancing measures, and has been paying up to 2 million KRW of the New Hope Fund since September 24.

The Ministry of SMEs and Startups explained that additional payment reviews are underway or procedures may be delayed only in cases where the recipient is unreachable, the phone or account is under another person's name, or the recipient has bad credit.

On the 23rd, one day before the metropolitan area’s social distancing is raised to Level 2, the streets of Myeongdong in Jung-gu, Seoul, are deserted due to the impact of COVID-19. Photo by Mun Ho-nam munonam@

However, small business owners who have not actually received the support funds are expressing their frustration. Mr. A, who runs a general restaurant in Chuncheon, Gangwon-do, said, "I applied for the support fund on the 16th of last month and received a registration number, but I have not received any contact. I even inquired about the progress three times this month," adding, "But they only explained that it would be done in two or three weeks and said the procedure was delayed." He said, "Sales are less than 50% compared to normal years, and my livelihood is threatened," and claimed, "It's unbelievable that they are discussing the 3rd support fund in the meantime." He also added, "I do not fall under the delay reasons such as (phone and account name, bad credit), and I have never been informed that there was a problem with the requirements."

Mr. B, who sells agricultural products in Gyeonggi-do, said, "Before COVID-19, monthly sales ranged from 5 million to 10 million KRW, but sales have been negative for three consecutive months since September," and appealed, "I applied for the New Hope Fund on October 17, but it still hasn't been paid. It's not New Hope but hope torture." Mr. C, who runs a general restaurant in Jinju, Gyeongnam, said, "They promoted that the fund would be given before Chuseok, but the counselor now says it will be paid until December," and criticized, "Talking about the 3rd support fund in this situation is absurd." He also said, "I heard that an official document was issued stating that applicants in October would receive it by November, and applicants in November would receive it by December."

Meanwhile, the Ministry of SMEs and Startups explained, "Those who meet the basic requirements have mostly received the funds," and added, "For small business owners who claim the disbursement amount is insufficient, objections are being accepted until the 30th."