Rapid Payment Possible in as Little as Five Days
Mr. Go, who runs a handmade lunchbox specialty store in Eoeun-dong, Yuseong-gu, Daejeon, operates his business by promoting special seasoning menus that do not use chemical seasonings, considering the health of his customers.
With this background, the store gained a foothold through word of mouth in the neighborhood, and delivery orders gradually increased during the COVID-19 pandemic. However, at some point, many customers began to hesitate to order due to the burden of delivery fees, and this phenomenon started to significantly affect overall sales.
Considering the customers' burden, Mr. Go bore the delivery fees himself and offered free delivery. However, due to the aftermath of high inflation, high interest rates, rising rent, and minimum wage increases, the management burden intensified day by day, making it difficult for him to continue bearing the delivery fees directly.
Following the increase in online shopping consumption after COVID-19, the scale of delivery has surged, increasing related costs. Competition among delivery platforms offering free delivery and discounts has led to more small business owners like Mr. Go facing difficulties.
According to the government on the 5th, the Ministry of SMEs and Startups (MSS) and the Small Enterprise and Market Service (SEMAS) are conducting a 'Small Business Delivery and Courier Fee Support' project this year with a budget of 203.7 billion KRW to support about 680,000 small business owners by providing up to 300,000 KRW for delivery and courier fees.
Accordingly, online applications began on the 17th of last month for 'rapid payment recipients,' and payments started just five days later, on the 21st of the same month, receiving positive responses from small business owners, SEMAS explained.
Mr. Go also received financial support through SEMAS. He said, "The support funds arrived just five days after applying," adding, "This support has given my store some breathing room in its operations."
This government project is part of follow-up measures to the comprehensive support plan for small business owners and self-employed announced in July last year. Anyone who is an individual or corporate business owner with annual sales under 104 million KRW, who has not closed their business as of the application date (including those temporarily closed), and who has delivery or courier performance from last year to this year, can apply.
However, considering the purpose of the project, businesses primarily engaged in delivery and those excluded from small business policy funds are not eligible for support. This includes quick service, delivery businesses, courier companies, as well as professional occupations such as lawyers, accountants, hospitals, pharmacies, and industries related to entertainment and gambling.
Detailed information can be found in the announcement on the MSS internet homepage. Guidance is also available through the Small Business Delivery and Courier Fee Support call center (1533-0500), the internet homepage, or SEMAS regional centers.
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