Kwon Chil-seung: "Separate from Loss Compensation, 1 Million Won Quarantine Support Fund for Small Business Owners Within the Year"

3.2 Trillion KRW Distributed to 3.2 Million Businesses
Priority Support for Small Businesses with Operating Hour Restrictions

Prime Minister Kim Boo-kyum is holding a joint government briefing on support measures for small business owners and self-employed workers following the implementation of strengthened quarantine measures at the Government Seoul Office Joint Briefing Room on the morning of the 17th. Photo by Yonhap News Agency

[Asia Economy Reporter Kim Heeyoon] The government will provide 1 million KRW in quarantine support funds to small businesses and self-employed individuals who suffer losses due to strengthened COVID-19 quarantine measures.

On the 17th, Kwon Chil-seung, Minister of SMEs and Startups, announced the 'Support Plan for Small Business Owners and Self-Employed due to Strengthened Quarantine Measures' at the Government Seoul Office alongside Prime Minister Kim Boo-kyum and Deputy Prime Minister for Economy Hong Nam-ki. He stated, "Separate from loss compensation, we will quickly provide 1 million KRW each to 3.2 million small businesses and self-employed operators affected by the strengthened quarantine measures, totaling 3.2 trillion KRW in quarantine support funds."

Minister Kwon emphasized, "We will prioritize support for small business owners subject to operating hour restrictions who are expected to suffer significant damage," adding, "Using the list of loss compensation recipients currently being processed, we will finalize the first phase support database for quarantine support next week to ensure that a substantial number of small business owners affected by operating hour restrictions receive prompt assistance within this year."

He continued, "Although some general affected industries are not subject to operating hour restrictions, we will provide support starting in January for those with decreased sales," promising, "Businesses that received the Emergency Relief Fund Plus or Hope Recovery Fund will be recognized as having decreased sales, and we will promptly finalize the list of eligible recipients."

Additionally, he said, "To enable more small business owners to receive support, we will broadly recognize various criteria for sales decline," and added, "We plan to utilize the application and payment system infrastructure accumulated through four rounds of small business disaster relief payments to ensure rapid disbursement via an online application system."

Minister Kwon also stated, "We will expand small business loss compensation, adding personnel restrictions on facilities to the existing gathering bans and operating hour restrictions for the 4th quarter of 2021 quarantine measures," emphasizing, "With industries such as beauty salons, first birthday party venues, and kids cafes included, the number of eligible businesses is estimated to expand to about 900,000. We will prepare to ensure smooth execution of the 4th quarter 2021 loss compensation by February next year."

The quarterly minimum loss compensation amount will be increased from the existing 100,000 KRW to 500,000 KRW.

Finally, Minister Kwon said, "As the minister in charge, I feel heavy-hearted thinking of small business owners who were hoping for sales recovery during the year-end and New Year period," and pledged, "We will do our best to ensure the swift execution of quarantine support funds and loss compensation so that they can be of even a little help to small business owners."