<기사>Ministry of SMEs and Startups Reflects KRW 9.6 Trillion for Small Business Quarantine Support and KRW 1.9 Trillion for Loss Compensation in Supplementary Budget

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] The Ministry of SMEs and Startups announced on the 21st that it has prepared an additional supplementary budget of 11.5 trillion won this year to support the recovery of damages for self-employed and small business owners due to the extension of quarantine measures.

This amount accounts for most (82%) of the 14 trillion won supplementary budget approved by the government through an extraordinary Cabinet meeting on the same day.

The supplementary budget includes 9.6 trillion won for quarantine support funds for small business owners and 1.9 trillion won for institutionalizing the loss compensation system for small business owners.

For the quarantine support fund for small business owners, the support amount per business is set at 3 million won, which is a threefold increase compared to the first round of quarantine support funds currently paid at 1 million won per business.

The total amount is organized as the largest 9.6 trillion won compared to the five previous rounds of disaster relief funds paid to small business owners, to support those whose damages have been exacerbated due to the extension of quarantine measures.

Self-employed individuals and civic groups held a press conference on the 5th in front of the Constitutional Court in Jongno-gu, Seoul, titled "One Year Since Filing a Constitutional Complaint, Condemning the National Assembly and Government's Loss Compensation Measures Full of Unconstitutionality." / Photo by Moon Honam munonam@

The support targets approximately 3.2 million small business owners and small enterprises whose sales have decreased.

Not only businesses that have directly complied with quarantine measures such as operating hour restrictions and facility capacity limits but also those indirectly affected, such as travel and performance businesses, are included.

An additional 1.9 trillion won has also been secured for the loss compensation budget. The original loss compensation budget for this year was 2.2 trillion won, but in December, it was increased to 3.2 trillion won to raise the minimum compensation from 100,000 won to 500,000 won and to expand the compensation target to include businesses with facility capacity restrictions.

With the additional 1.9 trillion won allocated this time, the total loss compensation budget for this year amounts to 5.1 trillion won, more than double the original budget of 2.2 trillion won.

Minister Kwon Chil-seung of the Ministry of SMEs and Startups stated, "In this severe situation where recent quarantine strengthening measures have been extended, we will strive to provide additional disaster relief funds and loss compensation as quickly as possible after they are confirmed by the National Assembly."

He added, "We will continue efforts to eliminate blind spots in loss compensation through consultations with related ministries regarding the targets and scope of loss compensation, and we will do our best to ensure efficient and equitable support using the budget secured through the supplementary budget."