Small Business Owners on the Brink Furious Over 'Electricity Fee Recovery'

Due to Sojingong System Error, KEPCO Cancels Electricity Bill Discounts
Small Business Owners Face 'Double Hardship' with No Support Fund Plus and Electricity Bill Discount Cancellation

Self-employed individuals who did not receive the fourth disaster relief fund for small business owners, the 'Support Fund Plus,' recently expressed their frustration again due to requests for refunds of reduced electricity charges, saying it "breaks their hearts." Illustration by Seongsu Oh

[Asia Economy Reporter Kim Heeyoon] On the 23rd, the government announced a two-week extension of the Level 4 social distancing measures in the Seoul metropolitan area, deepening the worries of small business owners. This comes as the fourth wave of COVID-19 led to the elevation of social distancing to Level 4 in Seoul and the metropolitan area, turning the peak summer sales season into a near shutdown. Among self-employed individuals, concerns are growing that if the government’s temporary Level 4 policy prolongs, closure will be the only remaining option.

Kim Hyungsu (pseudonym), who runs a Western-style restaurant with six tables in Seodaemun-gu, Seoul, said, “Although not at pre-COVID-19 levels, until recently, we had many evening customers and made about 400,000 KRW in daily sales, but after the elevation to Level 4 social distancing, sales plummeted to the 100,000 KRW range.” He added, “We have been enduring this hardship for nearly two weeks, and after receiving a notice of non-payment for the Support Fund Plus a few days ago, I am now considering whether to close the store.”

Self-employed individuals who did not receive the fourth round of disaster relief funds for small business owners, called the ‘Support Fund Plus,’ recently expressed their frustration again due to requests for refunds of discounted electricity bills.

Jo Jungsun (pseudonym), who runs a restaurant in Jongno-gu, Seoul, received a 280,000 KRW discount on electricity bills last month as part of small business support. Given the sharp drop in sales due to the Level 4 distancing, it was welcome news. However, on the 20th, she received a notice from Korea Electric Power Corporation (KEPCO) stating that she was “not eligible for electricity bill discounts due to a computer error by the Small Enterprise and Market Service,” and was asked to repay the previously discounted amount. Jo said, “They reduced my electricity bill without my application, but now they say I have to return it due to a computer error. Does that make sense? Business is so bad I’m struggling to survive, and this month’s bill came to 560,000 KRW, so I have to pay a total of 840,000 KRW. The burden is too heavy, and I’m very upset.”

Earlier, the government announced that along with the Support Fund Plus payments, electricity bills for eligible small business owners would be discounted by up to 50%. The incident originated from a computer error during the process where the Small Enterprise and Market Service, which reviews Support Fund Plus payments, sent the disaster relief payment recipient list to KEPCO, mistakenly including those who were not eligible for payment.

Small business owners who were excluded from the Support Fund Plus payments and who had not even applied for the electricity discount but received it and are now required to repay it expressed continuous frustration.

A representative from the Small Enterprise and Market Service stated, “We take full responsibility for the confusion caused by this incident and sincerely apologize.” However, the number of small business owners who must repay electricity bills and the total amount to be recovered have not yet been properly identified. A KEPCO official explained, “While KEPCO is responsible for the discount, the list of eligible recipients was provided by the Small Enterprise and Market Service, so the incorrect list can only be confirmed after their review.”

Ryu Pilseon, Policy Director of the Korea Federation of Small and Medium Business, pointed out, “The notification of non-payment of the Support Fund combined with the cancellation of electricity bill discounts is worsening the difficulties faced by small business owners suffering under Level 4 social distancing. The government needs to conduct administrative procedures more meticulously and consider separate relief measures for this unfortunate situation.”