SBC "Prioritizing Small Business Management Normalization"... Managing Over 18 Trillion Won Budget This Year

Jo Bonghwan, Director of Sojin-gong, to Hold New Year Press Conference on the 26th
Focus on Supporting Small Business Owners through Loss Compensation, Quarantine Support, and Loans
Promotion of Various Online and Offline Events, Digitalization, and Domestic Demand Revitalization

Jonghwan Jo, President of the Small Enterprise and Market Service

The Small Enterprise and Market Service (SEMAS) has set its biggest task this year as ensuring the smooth implementation of various support measures, including loss compensation, to normalize the management of small business owners. The total amount of loss compensation, quarantine support funds, and emergency loans handled by SEMAS this year exceeds 18 trillion won.

On the morning of the 26th, Cho Bong-hwan, the director of SEMAS, held a New Year's press conference at the Korea Federation of SMEs in Yeouido, Seoul, stating, "We will prioritize the normalization of management for small business owners and traditional markets."

SEMAS plans to faithfully implement the loss compensation system, rapid payment of quarantine support funds, and emergency loan support to help small business owners affected by COVID-19 recover and leap forward. Loss compensation will be provided to businesses that suffered operational losses due to government quarantine measures, and through the revision of the Enforcement Decree of the Small Business Act within this month, businesses with 'facility occupancy restrictions' will also be included as compensation targets.

Applications for loss compensation for operational losses in the fourth quarter of last year are expected to be available from next month, and for losses in the first quarter of this year, from May. The budget for loss compensation totals 5.1 trillion won, including the existing 3.2 trillion won and an additional supplementary budget of 1.9 trillion won.

[Image source=Yonhap News]

Separately, to expedite the disbursement of quarantine support funds, convenience for small and micro businesses will be enhanced. A pre-DB using administrative information will enable non-face-to-face, online, and no-document procedures. The sales revenue criterion will be raised from 400 million won to 1 billion won, significantly expanding the payment target. Through the supplementary budget securing 9.6 trillion won, 3 million won will be paid to 3.2 million small and micro businesses.

To support small business owners facing liquidity difficulties due to COVID-19, emergency funds (3.4 trillion won) such as hope loans and special loans for daily recovery will be continuously supplied, and the proportion of direct loans this year is planned to be significantly expanded to 56.5%.

To revitalize the stagnant traditional markets and shopping districts, various offline events such as the National Excellent Market Expo, Joint Sale, and Excellent Regional Product Exhibitions will be held in accordance with quarantine conditions and seasonal timing. To lead the digital transformation of small business owners and traditional markets, efforts will be made to promote smart new technologies in shopping districts (4,000 locations), support entry into O2O (online-offline linked) platforms (17,000 locations), support online entry for traditional markets (22 markets), and issue mobile Onnuri gift certificates (500 billion won), thereby fostering self-sustainability and driving sustainable digital transformation.

Director Cho said, "We will enhance the convenience of small business owners' work through innovative administration and improve public trust," adding, "We will provide creative and swift support so that our efforts bear fruit in the normalization of small business owners' management."