Advance Payment of Loss Compensation Surpasses 1.2 Trillion Won... "Normal Payments During Seol Holiday"

[Asia Economy Reporter Choi Dong-hyun] The amount of 'advance loss compensation payments' for small business owners struggling due to COVID-19 has surpassed 1.2 trillion KRW.

The Ministry of SMEs and Startups announced on the 28th at 1 PM that 401,322 small business owners and small enterprises have applied for advance loss compensation payments. Among them, payments totaling approximately 1.26934 trillion KRW have been made to 255,487 businesses so far.

The advance loss compensation payment system provides 5 million KRW in advance to small business owners and small enterprises eligible for loss compensation for the fourth quarter of last year and the first quarter of this year before the loss compensation amount is finalized. Although formally disbursed as a loan, no interest is applied until the loss compensation amount is confirmed. Applications have been accepted since the 19th.

An official from the Ministry of SMEs and Startups stated, "The number of applicants is higher than initially expected," adding, "We have taken emergency measures to ensure that applications, agreements, and payments proceed normally online even during the Lunar New Year holiday." He continued, "If the current trend continues, most applicants are expected to receive payments before the end of the Lunar New Year holiday," and added, "We will do our best to ensure there are no inconveniences in disbursements during the holiday period for small business owners struggling due to COVID-19."