Support Fund Distributed to 2.5 Million People in One Week, 90% Completed

[Asia Economy Reporter Kim Jong-hwa] As of the 17th, one week into the application period, the number of small business owners benefiting from the government’s support fund, which provides rent and other assistance to those affected by sales declines due to the spread of the novel coronavirus infection (COVID-19), has reached 2.5 million.

The Ministry of SMEs and Startups (MSS) announced that from the 11th to the 17th, it paid 3.4614 trillion won to 2,497,000 applicants for the support fund (as of 8 a.m. on the 18th). This corresponds to 90% of the 2.76 million people eligible for the first rapid payment.

The payment rates for businesses subject to gathering bans and business restrictions were 98% and 97%, respectively, which were relatively higher than the 88% for general businesses.

Starting from the 18th, the MSS will change to a once-daily payment system, paying applications received by midnight at 3 a.m. the next day. During the past week, to support many applicants as quickly as possible, payments were made twice daily, with applications received in the morning paid at 3 p.m.

With over 90% of payments completed and daily applicants decreasing from a maximum of 1.08 million to about 30,000, the once-daily payment system aims to improve operational efficiency.

However, from the 25th, when new rapid payment targets such as winter sports facilities are added, the number of applicants is expected to surge over three days, so payments will be made twice daily during that period.

Lee Eun-cheong, head of the Small Business Policy Division at the MSS, said, "It is fortunate that we were able to support over 90% of the first rapid payment target group within one week of the support fund rollout," adding, "Through cooperation with local governments and the Ministry of Culture, Sports and Tourism, we plan to include many people who were not part of the first rapid payment target group in the payments on the 25th."