Seoul City to Provide 1 Million Won 'Business Crisis Support Fund' to Small Business Owners in Loss Compensation Blind Spots

277 Business Crisis Sectors with Sales Decrease of Over 10%

[Asia Economy Reporter Lim Cheol-young] Although sales have decreased due to the prolonged COVID-19 pandemic, Seoul City will provide 1 million KRW in cash as a ‘Business Crisis Support Fund’ to 277 small business owners in crisis industries who have not properly received government loss compensation because they were not subject to gathering bans or business restrictions.

On the 20th, Seoul City announced that although sales have sharply declined in reality, a blind spot occurred where businesses with a large absolute annual sales scale could not receive rent support. In line with the easing of quarantine regulations, the city decided to provide the ‘Business Crisis Support Fund’ to quickly and robustly support previously neglected industries. The purpose is to alleviate fixed cost burdens through direct financial support to small business owners in the accumulating blind spot and to help them recover daily life quickly and overcome the crisis.

The support targets are small business owners whose business location is registered in Seoul on their business registration certificate and who are currently operating their business as of the announcement date. They must have received the government (Ministry of SMEs and Startups) quarantine support fund (1st round) due to sales decline and simultaneously received either the Buttress Fund Plus Business Crisis Industry (112 industries with a sales decline rate of 20% or more) or the Hope Recovery Fund Business Crisis Industry (277 industries with a sales decline rate of 10% or more).

However, those who have benefited from Seoul City’s Rent Support Fund for Tenant Small Business Owners, Tourism Industry Crisis Recovery Fund, or rent reductions from Seoul City and its affiliated investment and donation institutions are excluded from support. If one person operates multiple businesses, only one business can receive support. If one business is operated by multiple representatives, the fund will be paid to only one representative.

The application period for the ‘Business Crisis Support Fund’ is about five weeks until June 24, and applications can be submitted online through the application website. Han Young-hee, Seoul City’s Director of Labor, Fairness, and Coexistence Policy, said, “Although small business owners are experiencing severe difficulties such as sales decline due to COVID-19, there were voices from the field that they did not receive proper support because they were not in industries subject to gathering bans or business restrictions. Seoul City will provide the fastest and flawless support possible so that small business owners in crisis industries can recover their daily lives even a little faster.”