Ministry of SMEs and Startups Opens Applications for Closed Store Rechallenge Incentive from the 14th

From December 17 Last Year to May 31 This Year, About 50,000 Closed Small Businesses Receive 1 Million KRW Each...Total 50 Billion KRW Paid
5 Hours of Online Re-Startup Education Completion and Minimum 90 Days of Operation Before Closure Required

[Asia Economy Reporter Kwak Min-jae] The Ministry of SMEs and Startups announced on the 13th that it will begin accepting applications for the Closed Store Rechallenge Incentive starting from the 14th.

The Closed Store Rechallenge Incentive was included in the supplementary budget in May this year to support the recovery of small business owners who closed their stores following strengthened quarantine measures in December last year. A total of 50 billion KRW will be distributed, with 1 million KRW each to approximately 50,000 small business owners who closed their stores.

The support targets are small business owners who closed their stores between December 17, last year, and May 31 of this year, and who operated their business for at least 90 days before closing. To receive the Closed Store Rechallenge Incentive, applicants must complete 5 hours of recovery education provided online by the Small Enterprise and Market Service. However, those who completed the Hope Return Package employment or re-startup education between 2021 and 2022 before applying for the incentive are exempted.

Those who already received the Closed Store Rechallenge Incentive in 2020-2021 or belong to industries excluded from small business policy fund loans, such as real estate rental, are excluded from support. The Closed Store Rechallenge Incentive and loss compensation funds cannot be received simultaneously.

If a business has no reported sales from 2020 until closure, making it difficult to consider it as an operating business, it may be excluded from eligibility. Even if one individual owns multiple businesses and closed more than once, the incentive is paid only once. For businesses operated by co-representatives, the incentive is paid to only one representative who submits a power of attorney from the other co-representatives.

The application period is about six weeks, from 9 a.m. on the 14th until August 26. To minimize confusion caused by simultaneous access, applications will be accepted sequentially according to the year of business opening.

For rapid payment targets pre-selected through the National Tax Service database, small business owners who closed stores with a business opening date before 2019 can apply from the 14th, those opened in 2020 from the 21st, and those opened after last year from the 28th.

For verification payment targets who require separate confirmation of eligibility such as closure date or small business status, or who must submit a power of attorney as joint business operators, applications can be made according to the year of business opening: before 2019 from the 18th, 2020 from the 25th, and after last year from the 1st of next month.

Both application and recovery education can be completed through the Closed Store Rechallenge Incentive website regardless of weekends or holidays. The website can also be accessed by searching for ‘폐업재도전장려금’ or ‘폐업재도전지원금’ on portal sites such as Naver or Daum.

Applicants should access the Closed Store Rechallenge Incentive website and apply according to the schedule indicated in the notification text message sent to them. Those who did not receive the message can check their eligibility according to the application schedule on the website.

Rapid payment applicants can complete the application through simple steps such as entering the closed business registration number, identity verification, entering transfer account details, and completing recovery education. Verification payment applicants must additionally submit separate documents such as a power of attorney from co-representatives.

Identity verification methods include the closed small business owner representative’s mobile phone registered in their name or a joint certificate. Payment is generally made the day after both application and recovery education are completed. However, verification payment applicants may require about two more weeks for eligibility confirmation such as closure date. Recovery education must be completed by the application deadline of the 26th of next month to receive payment.