[Asia Economy Reporter Junhyung Lee] Loss compensation payments of 5 million KRW each were pre-paid to about 100,000 small businesses and self-employed individuals affected by COVID-19 from the 19th to 9 a.m. on the 24th of this month.
The Ministry of SMEs and Startups announced that from the 19th to the 23rd of this month, during the 5-day rotation system period, 293,404 small businesses and self-employed individuals applied for the loss compensation pre-payment. As of 9 a.m. that day, a total of 521.8 billion KRW was paid to 104,355 companies.
About 290,000 small businesses and self-employed individuals applied for the pre-payment, accounting for 53.6% of the total eligible applicants (550,000 companies). Restaurants and cafes accounted for 82.8% (237,828 companies) of the small businesses and self-employed individuals who applied for the pre-payment. This was followed by entertainment facilities at 6.1% (17,563 companies), indoor sports facilities at 4.9% (14,024 companies), and singing practice rooms at 4.7% (13,612 companies).
The Ministry of SMEs and Startups has already paid a total of 500 billion KRW to about 100,000 places. The loss compensation payments are pre-paid daily at 9 a.m., 12 p.m., 3 p.m., and 6 p.m., including this day. The pre-payment of loss compensation is conducted interest-free until the loss compensation for the fourth quarter of last year and the first quarter of this year is confirmed and deducted from the principal. The Ministry explains that this can help self-employed individuals who urgently need funds.
Deputy Minister Kang Seong-cheon Announcing the Implementation Plan for Advance Loss Compensation Payment (Seoul=Yonhap News) Photo by Kim Seung-doo = Deputy Minister Kang Seong-cheon of the Ministry of SMEs and Startups is announcing the implementation plan for advance loss compensation payment for small business owners struggling due to COVID-19 at the government Seoul office briefing room on January 10, 2022.
kimsdoo@yna.co.kr
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From this day, the 5-day rotation system ends, and applications can be made regardless of the last digit of the resident registration number birth year. Applications can be submitted 24 hours a day from 9 a.m. at '손실보상선지급.kr' (sonsilbosangseonjigeup.kr). The Ministry plans to close pre-payment applications before paying the loss compensation for the fourth quarter of last year. Detailed schedules will be announced on sonsilbosangseonjigeup.kr in early next month.
The agreement for this pre-payment will be conducted 24 hours a day so that the payment can be received before the Lunar New Year holiday. The Ministry will also conduct special payments on the 29th and 30th of this month. If the agreement is completed by the 29th, the loss compensation payment can be received the next day (30th).
Deputy Minister Kang Seong-cheon of the Ministry of SMEs and Startups said, "Small business owners and self-employed individuals have shown higher interest than expected in the loss compensation pre-payment," adding, "We will take full responsibility to ensure that those who applied for the pre-payment receive the payment before the Lunar New Year holiday."
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