Struggling Self-Employed with Electricity Bills... Government to Provide 200,000 Won Each

For the First 4 Days of Registration, Odd-Even System Based on the Last Digit of Business Registration Number

The government will ease the burden of electricity bills, a key difficulty voiced by small business owners. Small business owners have been calling for measures to address electricity bills, high interest rates, and labor shortages, with support starting from electricity bills. Following the electricity bill reduction, refinancing loans and interest refunds to alleviate interest burdens will also be implemented within the first quarter.

The Ministry of SMEs and Startups announced that it will publicize the 'Special Support Project for Small Business Electricity Bills' on the 15th. Amid the prolonged triple crisis of high inflation, high interest rates, and high exchange rates following COVID-19 since 2020, the burden on small business owners has rapidly increased due to electricity bill normalization measures that began the year before last. Consequently, there has been bipartisan consensus on the need to support small business owners, and during last year's National Assembly budget review process, a temporary budget of 252 billion KRW was allocated for special electricity bill support.

The support targets for this project are individual and corporate business owners who are active as of the announcement date, have annual sales of 30 million KRW or less, and bear business electricity bills. More specifically, the business registration must show a start date before December 31, 2023, and according to the National Tax Service inquiry on the announcement date (the 15th), the business must not be closed. Additionally, based on the National Tax Service inquiry on the announcement date, the annual sales for 2022 or 2023 must be 30 million KRW or less.

Here, annual sales refer to the VAT-reported sales amount to the National Tax Service. However, for businesses that started during the current year, the annualized sales are calculated based on the average monthly sales after opening. The electricity used at the applicant’s business must be for general, industrial, agricultural, educational, or non-residential housing purposes. Businesses confirmed as eligible can receive support of up to 200,000 KRW. To prevent duplicate benefits, even if one person is the representative of multiple businesses, only one application is allowed, and for businesses operated by co-representatives, only one representative can apply.

There are direct contract users who have contracts with Korea Electric Power Corporation (KEPCO), but considering that some users consume electricity without contracts and bear the costs, the support method will be dualized. First, direct contract users can apply from the 21st of this month to April 20th for two months. KEPCO will provide support by deducting the electricity bill on the direct contract user's bill, and the deduction benefit will be automatically applied from the first bill issued after notification of eligibility. For the convenience of applicants, eligibility will be confirmed through cooperation with the National Tax Service and KEPCO without requiring separate document submission, and notifications will be sent via text message.

Non-contract users can apply from May 4th to May 3rd. Although non-contract users also consume electricity and bear the costs, they do not have contracts with KEPCO, and the payment methods vary, making it difficult to verify electricity bill payment status. To minimize blind spots, the Ministry of SMEs and Startups will separately verify documents confirming business electricity usage and payment for non-contract users and refund up to 200,000 KRW based on the verified payment amount.

Eligible businesses can apply online. If online application is difficult, assistance is available by visiting one of the 77 regional centers of the Small Enterprise and Market Service. On the first day of application, submissions are accepted from 9 a.m. to midnight; on the last day, from midnight to 6 p.m.; and during other days, applications are accepted 24 hours. Additionally, for the first four days after the start of applications, an odd-even system based on the last digit of the business registration number will be applied to distribute access.

Detailed information can be found in the announcement on the Ministry of SMEs and Startups website starting on the 15th, and guidance is also available through the Small Business Electricity Bill Special Support Call Center or the Small Enterprise and Market Service regional centers. Won Young-jun, Director of the Small Business Policy Office at the Ministry of SMEs and Startups, said, “We hope this special electricity bill support project will alleviate the accumulated management burdens of small business owners even a little. We ask eligible small business owners to actively apply, and the Ministry of SMEs and Startups will work closely with KEPCO and related organizations to ensure smooth support.”