Yongsan-gu Provides 500,000 KRW Each to Over 700 Closed Small Business Owners

Support Funds Paid Within 10 Days After Eligibility Review for Small Business Owners Closed Between March 22, 2020, and June 7, 2021

[Asia Economy Reporter Jong-il Park] Last year, more than 30,000 stores in Seoul alone closed due to COVID-19 related gathering bans and business restrictions. Support measures are needed to help small business owners who have closed their stores to recover.

Yongsan-gu (District Mayor Seongchang Hyun) is accepting applications for a 500,000 KRW support fund for closed small business owners until July 30.

The support targets small business owners in gathering ban and business restriction industries whose business locations were in Yongsan-gu as of the announcement date (June 7) and who have closed their businesses.

The closure period is from March 22, 2020, to June 7, 2021, and those who operated their business for at least 90 days before closure (including opening date, excluding closing date) are eligible to apply for the support fund.

The small business criteria are companies with sales between 1 billion and 12 billion KRW in 2019 or 2020, and with 5 to fewer than 10 regular employees in 2020 (fewer than 10 employees for mining, manufacturing, construction, and transportation sectors; fewer than 5 employees for other sectors).

Businesses located within facilities subject to gathering bans and business restrictions are also considered to have been subject to the same measures and are eligible for support.

Those who closed after the announcement date, those without business registration, non-profit organizations, corporations and unincorporated associations, those who did not report sales to the National Tax Service, and businesses that violated administrative orders on gathering bans and business restrictions are not eligible.

Small business owners wishing to apply should visit the relevant department by industry and submit an application form, ID, bankbook copy, certificate of business closure, sales report confirmation, and small business verification documents.

The Health and Hygiene Division handles entertainment establishments of five types (entertainment, danran, emotional pubs, hunting pubs, colatecs), hold'em pubs, restaurants and cafes, beauty salons, bathhouses, and lodging facilities. The Culture and Sports Division manages arcades, multi-rooms, PC rooms, cinemas, karaoke rooms, party rooms, amusement parks, water parks, indoor standing concert halls, indoor sports facilities, enclosed outdoor screen golf courses, winter sports facilities, and lodging facilities (tourist hotels, foreigner tourist city guesthouses). The Talent Development Division oversees academies, private institutes, reading rooms, and study cafes. The Job and Economy Division is responsible for vocational training institutions, direct sales promotion centers, and large retail stores (over 300㎡). The Health and Medical Division manages medical device free trial rooms.

The relevant department will review eligibility and pay the support fund within 10 days (cash transfer to the representative's account as per the business registration certificate). In the case of co-representatives, each representative can apply and receive support separately. If co-representatives are family members (spouse, direct lineal non-descendants), only one person will receive support.

Approximately 700 individuals (locations) in the region are eligible. The estimated budget is 350 million KRW, which will be covered by the district's disaster and emergency contingency funds.

Seongchang Hyun, Mayor of Yongsan-gu, said, "We will provide support funds for small business owners who have closed their stores," and added, "The district will spare no effort to help those who have closed their businesses and faced difficulties to recover as soon as possible."

In addition to providing support funds for closed small business owners, the district plans to actively assist local small business owners through ▲ 20 billion KRW interest-free loans for small business owners ▲ 15.6 billion KRW special credit guarantees ▲ 7 billion KRW loans for small and youth enterprises ▲ deferral of fines and seizures for violations of the Building Act ▲ operation of a customized bidding information system ▲ one department one economic revival initiative ▲ early execution of the budget.