Support for Small Business Owners with Sogongyeon, Sarangui Yeolmae, etc.
500 People Receive 500,000 Won Each... Over 25,000 Applicants
50 to 1 Competition Rate... "Reveals Reality of Small Business Owners"
"Need for Win-Win Efforts Including Corporate Donation Participation"
The COVID-19 crisis is deepening the struggles of small business owners. A wave of closures is occurring in the commercial area near Ewha Womans University in Seodaemun-gu, Seoul. Photo by Jinhyung Kang aymsdream@
"I was worried sick that I might have to close the academy I have run for over 20 years, but now I can breathe a little easier. The support fund was deposited just ten days after I completed the application."
Junghee Chae, who runs a tutoring academy in Yeoncheon-gun, Gyeonggi Province, suffered significant losses as the number of students dropped by up to 60% due to the COVID-19 pandemic. Every time quarantine measures were strengthened, the academy had to close three times for one to two weeks each. Having taught elementary and middle school students in the same place for over 20 years, Chae even considered shutting down the business. Desperate to find any help, she searched everywhere and eventually learned that the Korea Federation of Micro Enterprise Associations was providing emergency living stabilization funds.
Chae said, "The support money was deposited into my account just ten days after completing the second round of document submission. I used it urgently for payroll and operating expenses." She expressed gratitude for the program and hoped that more small business owners in blind spots would have opportunities to receive support.
Employees of the Korea Federation of Micro Enterprise review application documents for the 'Emergency Living Stabilization Fund for Small Business Owners.' The emergency living stabilization fund utilized funds designated and donated by the Credit Card Social Contribution Foundation to the Community Chest of Korea. In August, the Federation provided 500 small business owners with 500,000 won each. [Photo by Korea Federation of Micro Enterprise]
The Korea Federation of Micro Enterprise Associations provided emergency funds of 500,000 KRW each to about 500 small business owners affected by COVID-19 last August. The funds were sourced from a designated donation by the Credit Card Social Contribution Foundation to the Community Chest of Korea. This support program attracted 25,630 applicants, resulting in a fierce competition ratio of 50 to 1. It clearly demonstrated the harsh reality faced by small business owners during the pandemic. A federation official reported, "So many applicants flooded the website and phone lines that the homepage crashed and calls could not get through."
The federation’s selection evaluation committee reviewed applicants based on criteria including ▲business owners with last year’s income below 40% of the median income, ▲income reduction rate, ▲last year’s sales, ▲family members, ▲number of regular employees, and ▲business operation period. Financial assets and debts were not separately investigated. The federation plans to continue expanding support measures for small business owners’ livelihood stabilization, utilizing funds such as the 500 million KRW designated donation from Woori Financial Group through the Community Chest of Korea last month.
Sehee Oh, president of the Korea Federation of Micro Enterprise Associations, said, "With the transition to 'With COVID-19,' small business owners can breathe a little easier, but it will take a long time for sales to recover to previous levels, and comprehensive social support is urgently needed." President Oh urged companies to participate in social responsibility efforts such as donating funds, saying, "To provide more benefits to small business owners, a win-win effort fulfilling social responsibility by companies is necessary," calling for corporate participation.
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