Delivery Fee Support, Burden Reduction Credit, and Biz Plus Card
Applications Open Starting July 14
The Ministry of SMEs and Startups announced on the 24th that it will fully implement the 'Three Major Support Programs' (Delivery Fee Support, Burden Reduction Credit, and Biz Plus Card) to ease the management burden on small business owners.
As a follow-up to the 'Comprehensive Measures for Small Business Owners and Self-Employed' announced in July last year, the Ministry began the 'Delivery and Courier Fee Support Program' on February 17 this year, using the main budget of 203.7 billion won. Subsequently, to provide broader and more practical support, the Burden Reduction Credit and Biz Plus Card programs were included in the supplementary budget proposal.
The two newly launched programs will be funded through the first supplementary budget of 2025, with 1.566 trillion won allocated for the Burden Reduction Credit and 700 billion won for the Biz Plus Card. Applications for these programs will begin on July 14. With these measures, the three major support programs?providing up to 300,000 won for delivery and courier fees, 500,000 won for the Burden Reduction Credit, and 10 million won for the Biz Plus Card?will be fully implemented to provide practical relief for small business owners.
First, the Burden Reduction Credit program targets small business owners with annual sales of 300 million won or less in 2024 or 2025. It provides up to 500,000 won in credit that can be used to pay utility bills (electricity, gas, and water) and the four major social insurance premiums. In the case of multiple businesses, only one business per person is eligible for application and support.
For the application process, small business owners select one card company at the application stage. After selection, all credit and debit cards held with that company are automatically registered, allowing the credit to be used. When paying utility bills or social insurance premiums with the registered card, the credit is automatically deducted without the need for separate documentation.
The application period is from July 14 to November 28. For those who open a business in 2025, considering that the National Tax Service’s semi-annual sales reporting period is from July 1 to July 25, applications can be submitted from August 1 to November 28. The credit can be used until December 31.
On the 27th, the meal expense limit under the Improper Solicitation and Graft Act, commonly known as the Kim Youngran Act, was raised from 30,000 won to 50,000 won. The menu and prices are displayed outside a restaurant in Seoul. Photo by Kang Jinhyung aymsdream@
The Biz Plus Card program allows small business owners with mid- to low-credit scores (NICE credit score between 595 and 839) to receive a credit card with a limit of up to 10 million won. The card is issued based on a guarantee certificate from a regional credit guarantee foundation and can be used to pay for business expenses such as purchasing materials or office equipment.
The Biz Plus Card not only offers a credit limit of up to 10 million won but also provides up to six months of interest-free installments and a cashback benefit of 3% of card usage (up to 100,000 won) during the first year. The annual card fee and guarantee fee are fully waived, so the card can be issued at no additional cost.
Applications for the Biz Plus Card are open from July 14 to December 31. To receive the card, applicants must complete two steps: first, apply for a guarantee through the regional credit guarantee foundation's 'Guarantee Dream' application; after the guarantee is approved, apply for the card through either the 'IBK Card' or 'i-One Bank (Corporate)' app of Industrial Bank of Korea. It may take up to 10 business days from guarantee application to card delivery.
The Delivery and Courier Fee Support Program covers all industries except those whose main business is delivery or courier services and those excluded from small business policy funding. Small business owners with annual sales of 300 million won or less can receive up to 300,000 won in support. In the case of multiple businesses, only one business per person is eligible for application and support.
Choi Wonyoung, Director of the Small Business Policy Office, stated, "The government has thoroughly prepared to swiftly implement the three major support programs, including the Burden Reduction Credit, to alleviate the management burden on small business owners. We will continue to promote and execute these programs closely in the field so that micro-business owners can benefit. We encourage small business owners to apply promptly and receive the essential support they need."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
