Third Disaster Relief Fund for Small Business Owners and Special Employment Types... Business Announcement on the 6th, Payments Starting from the 11th

Asia Economy DB=Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Kim Bo-kyung] The payment process for support funds for vulnerable employment groups such as small business owners and special-type workers (STWs) affected by the third wave of the novel coronavirus infection (COVID-19) will begin soon.

According to the Ministry of Economy and Finance on the 3rd, the government will announce the Small Business Owner Support Fund and Emergency Employment Stability Support Fund projects on the 6th. This is the official procedure to inform the public of the detailed plans for the third disaster relief fund before the projects officially start.

The Small Business Owner Support Fund is a project that provides support funds to a total of 2.8 million small business owners with annual sales of 400 million KRW or less, whose businesses were subject to government quarantine guidelines such as gathering bans or restrictions, and whose sales decreased compared to the previous year. Businesses under gathering bans receive 3 million KRW, those under gathering restrictions receive 2 million KRW, and general businesses receive 1 million KRW.

The Emergency Employment Stability Support Fund is a project that provides 500,000 KRW (for previous recipients) or 1 million KRW (for new recipients) to 700,000 STWs and freelancers whose income has decreased due to the prolonged COVID-19 pandemic.

The government plans to prioritize payments to groups that have already received support funds for small business owners and STWs, and then proceed with new support. Since the government already holds data on previous recipients, it can disburse funds more quickly and to more people.

[Image source=Yonhap News]

For the Emergency Employment Stability Support Fund targeting STWs and freelancers, notification messages will be sent starting on the 6th to 650,000 existing recipients along with the project announcement.

Those who wish to receive the support can complete a simple online application process, and payments will begin on the 11th. A Ministry of Employment and Labor official stated, "The 650,000 people who received support through the first and second projects will receive an additional 500,000 KRW without separate screening by the 15th."

Among those who have not previously received support, 50,000 people with an annual income of 50 million KRW or less, whose income in December 2020 or January 2021 decreased by 25% or more compared to the comparison period income, will receive 1 million KRW after screening.

The comparison period can be chosen from one of the following: ▲2019 annual average income ▲December 2019 ▲January 2020 ▲October 2020 ▲November 2020 income. Support funds for these 50,000 people will be announced in January, applications accepted, and payments made between February and March.

The government has newly established a program to provide 500,000 KRW in livelihood support funds to 90,000 visiting care service workers and after-school instructors. The purpose is to support workers affiliated with service and dispatch companies whose livelihoods have become difficult due to reduced work caused by COVID-19.

Visiting care service workers include caregivers, disability activity supporters, child caregivers, as well as workers in housekeeping and nursing services, disabled child care, customized elderly care, and maternity and newborn services. Priority support will be given to low-income individuals who have worked in related jobs for a certain period over the past year.

Applications will be accepted following the January project announcement, and payments will begin at the end of February.

Additionally, 80,000 corporate taxi drivers whose income has decreased due to a drop in passengers will receive 500,000 KRW in income stabilization funds. The project announcement and application process will take place in January, with recipients finalized by the end of January.

The Small Business Owner Support Fund will send notification messages to 2.5 million previous recipients starting on the 11th. Online applications will be accepted simultaneously, and payments will be made as soon as preparations are complete. In other words, those who apply early can receive support funds starting on the 11th. The government aims to complete payments within January. Procedures for new applicants for the Small Business Owner Support Fund will begin on the 25th.