Jinju-si, Small Business Loss Compensation in Progress

Jinju City Hall exterior view.

[Asia Economy Yeongnam Reporting Headquarters Reporter Choi Soon-kyung] Jinju City, Gyeongnam, has started accepting applications for the government-supported ‘Small Business Loss Compensation’ for small business owners who suffered severe financial losses due to quarantine measures amid the COVID-19 pandemic.

This loss compensation support applies to eight types of small business establishments that were subject to gathering bans and operating hour restrictions from July 7 to September 30, including entertainment and karaoke bars, singing practice rooms, holdem pubs, colatecs, restaurants and cafes, bathhouses, direct sales promotion centers, and swimming pools.

Loss compensation can be applied for on the loss compensation website. The compensation amount is calculated by multiplying the average daily loss amount in the corresponding month of 2021 compared to 2019 by the number of days under quarantine measures such as operating hour restrictions during the third quarter, then multiplying by a correction rate of 80%. The minimum amount is 100,000 KRW, and the maximum amount is 100 million KRW.

If a business falls under the eligible industries for loss compensation but is not recognized as a support target, submitting business information such as a business registration certificate online will allow the National Tax Service to verify and provide the calculated compensation.

A Jinju City official stated, “If you do not agree with the quick compensation amount, you can submit supporting documents to undergo a verification compensation process to recalculate the compensation amount,” adding, “An opportunity is provided to recalculate the loss compensation amount once more through an objection application.”