Quarantine Period Reduced to 17 Days Compared to Previous Quarter
[Asia Economy Reporter Kim Bo-kyung] The government will pay a total of 890 billion KRW in loss compensation to about 650,000 small business owners and SMEs in the second quarter of this year.
The Ministry of SMEs and Startups announced on the 27th that it held the 30th Loss Compensation Deliberation Committee meeting and approved the payment plan for the second quarter of 2022, starting online applications from the 29th.
The Ministry plans to pay approximately 890 billion KRW to about 650,000 businesses for the second quarter loss compensation.
The compensation targets are small business owners and small enterprises that complied with business hour restrictions and facility capacity limits from April 1 to 17, as well as medium-sized enterprises with annual sales under 3 billion KRW that experienced a decrease in sales.
Due to the lifting of facility capacity restrictions on beauty salons, general academies, and others, as well as the short quarantine period (17 days), the total number of compensation targets has slightly decreased compared to the previous quarter.
A Ministry of SMEs and Startups official stated, "As in the first quarter of 2022, the correction rate is set at 100% to compensate for the entire decrease in operating profit, and the minimum amount is maintained at 1 million KRW to provide as much support as possible."
They also explained, "The calculation method was adjusted so that the increase in sales due to the lifting of quarantine measures after April 18 does not cause disadvantages in the monthly compensation calculation."
The rapid compensation scale for the second quarter is 574,000 businesses and 770 billion KRW, accounting for 88% of all eligible businesses and 87% of the total compensation amount for the second quarter of 2022. Rapid compensation pre-calculates compensation amounts using administrative data from the National Tax Service and local governments, allowing fast payment upon application without submitting additional documents.
The number of rapid compensation target businesses is highest in restaurants and cafes with 459,000 places (81.1%, 580 billion KRW), followed by indoor sports facilities with 43,000 places (7.6%), and entertainment facilities with 27,000 places (4.8%).
Rapid compensation target businesses can apply for compensation online through the dedicated loss compensation website starting at 9 a.m. on the 29th.
For the first five days, a five-day rotation system based on the last digit of the business registration number will be operated, and notification messages will be sent to applicants on the designated days. Even if you do not receive a text message, you can check whether you are eligible for rapid compensation on the website.
Offline applications will also be available from the 4th of next month. Both online and offline applications will operate an odd-even system based on the last digit of the business registration number for six days from the 4th to the 9th.
Businesses wishing to apply offline can visit the dedicated loss compensation counters set up at the nearest city, county, or district office in their business location.
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