1% Annual Loans for 2.13 Million Small Business Owners... 30 Trillion Won Issued in Local Love Gift Certificates

Minimum Loss Compensation Raised from 100,000 to 500,000 Won
Additional Support for Non-Targeted Sectors Including Tourism and Taxi Services

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Moon Chaeseok] Next year, ultra-low interest loans with a minimum annual interest rate of 1.0%, totaling approximately 36 trillion won, will be supplied to 2.13 million small business owners.

An additional 400 billion won in support funds has been allocated for small business owners in sectors not eligible for loss compensation, such as tourism, sports, culture, taxi, and bus industries. The issuance scale of local love gift certificates will increase to 30 trillion won.

The National Assembly approved the next year's budget, which includes these measures, on the 3rd. The government increased the budget for loss compensation and tailored support for non-eligible sectors from the original 8.1 trillion won in the government proposal to 10.1 trillion won, an increase of 2 trillion won. Through this, the minimum loss compensation amount for small business owners was raised fivefold from the existing 100,000 won to 500,000 won (per quarter). Loans with a minimum annual interest rate of 1.0% totaling 35.8 trillion won will be supplied to 2.13 million small business owners.

For sectors not eligible for loss compensation, such as tourism, sports, culture, taxi, and bus industries, an additional tailored support plan worth approximately 400 billion won has been added, covering finance, manpower, quarantine supplies, and sales recovery.

The budget for revitalizing the local economy has been increased by 1.7 trillion won. The national treasury support for the issuance of local love gift certificates has increased from the original government proposal of 6 trillion won to 15 trillion won. Including the support budget from local governments, the total issuance scale will amount to approximately 30 trillion won. This is an increase from the 21 trillion won issued this year.

Local allocation tax has increased by 2.4 trillion won, further reinforcing local finances.