Compensation Payments for Small Business Owners Begin at the End of October

Government Holds '2nd Supplementary Budget Inter-Ministerial TF Meeting'

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Moon Chaeseok] The government will start disbursing compensation payments for losses to small business owners from the end of October.

On the 26th, the government held the 2nd supplementary budget inter-ministerial task force (TF) meeting at the Government Complex Sejong, chaired by Ando Geol, the 2nd Vice Minister of the Ministry of Economy and Finance, to discuss these matters.

Once the Small Business Act is enforced on October 8, a Loss Compensation Deliberation Committee will be convened, detailed guidelines will be announced, and applications will be accepted from mid-October. Actual compensation payments are expected to begin at the end of October.

The payment targets are small business owners who have suffered significant operational losses due to assembly bans and business hour restrictions implemented after the promulgation of the amended law on the 7th.

Support will be provided based on the decrease in business income during the quarantine period compared to 2019 sales. However, fixed costs such as labor and rent will be considered separately. Specific compensation calculation methods will be finalized after review by the Deliberation Committee.

Small business owners can apply for the support funds through the online integrated management system or by visiting local government offices. After review by the Ministry of SMEs and Startups and deliberation by the committee, the final payment will be made.