Gwangju·Jeonnam Small and Medium Business Administration to Open Online Applications for 'Small Business Loss Compensation' Starting Tomorrow

[Asia Economy Honam Reporting Headquarters Reporter Park Jin-hyung] The Gwangju-Jeonnam Regional Small and Medium Business Administration (Administrator Jang Daegyo, hereinafter Gwangju SMB Administration) announced that starting from the 27th, with the commencement of loss compensation application and payment, it will form a collaborative network with local governments and establish dedicated service desks.

The loss compensation targets are small businesses that have incurred losses due to assembly bans and business hour restrictions imposed after July 7.

The compensation amount will be customized and calculated in proportion to the individual business's loss amount.

The loss compensation amount is calculated by applying the quarantine measure implementation period and a correction rate (80% fixed) to the average daily loss amount of the same month this year compared to 2019, which was unaffected by COVID-19.

When calculating the average daily loss amount, in addition to operating profit margin, the ratio of labor costs and rent to sales is fully reflected at 100%, aiming to provide more substantial compensation.

The Gwangju-Jeonnam SMB Administration plans to enable small business owners to apply for and receive compensation as quickly and conveniently as possible through an online system.

To this end, they plan to promote ‘Rapid Compensation’ by pre-calculating compensation amounts using local government quarantine facility lists and National Tax Service tax data, eliminating the burden of document verification, and swiftly paying within two days after application, which is expected to greatly enhance convenience for small business owners.

Furthermore, if applicants disagree with the amount calculated in ‘Rapid Compensation,’ they can submit additional supporting documents through ‘Confirmed Compensation’ to have the compensation amount recalculated.

If applicants still disagree with the amount calculated through ‘Confirmed Compensation,’ they can seek relief through an objection process.

Applications for compensation are scheduled to begin tomorrow through the loss compensation website, and for those who find online application difficult, from Wednesday, November 3, they can visit dedicated loss compensation service desks at 30 city, county, and district offices in Gwangju, Jeonnam, and Jeju to apply.

Administrator Jang Daegyo stated, “We are making every effort to ensure the implementation of loss compensation so that small business owners, who are the backbone of the local economy, can return to their daily lives as soon as possible.”