Legal Basis Established for Public Utility Fee Support and Long-Term Installment Repayment of Policy Funds for Micro Enterprises

Cabinet Approves Amendment to the Enforcement Decree of the Act on the Protection and Support of Micro Enterprises
Legal Basis Established for Public Utility Fee Support and Long-term Installment Repayment for Micro Enterprises

The Ministry of SMEs and Startups announced on July 1 that the revised Enforcement Decree of the Act on the Protection and Support of Micro Enterprises, which includes specific measures such as public utility fee support for micro enterprises, was approved at a Cabinet meeting. The revised decree will take effect on July 22.

The revised decree specifies the details delegated by the amended Act on the Protection and Support of Micro Enterprises, including: ▲ public utility fee support for micro enterprises; ▲ collection and use of tax information and other data on micro enterprises by the Minister of SMEs and Startups for disaster relief purposes; and ▲ standards and methods for long-term installment repayment of policy funds for micro enterprises.

First, the scope of public utility fees eligible for support for micro enterprises is defined as those under Article 4, Paragraph 1 of the Price Stabilization Act, and may include essential fees for business operations such as electricity, gas, and water charges. The amount of support will be determined by considering both the extent of public utility fee increases and the level of management burden on micro enterprises. Support may be provided directly to micro enterprises or indirectly, by having the public utility fee charging agency deduct the support amount from the bill.

In addition, the Minister of SMEs and Startups may, in accordance with relevant laws, request tax information and resident registration data from the Commissioner of the National Tax Service, the Minister of the Interior and Safety, and the heads of local governments to support micro enterprises in disaster situations such as COVID-19. Under the revised decree, the Minister may also request, from the President of the National Health Insurance Service and the head of the Credit Finance Association, the number of workplace subscribers to the National Health Insurance by business registration number, franchisee information, and monthly credit card transaction amounts by credit card merchant.

The revised decree also stipulates the basis for long-term installment repayment of policy funds for micro enterprises, allowing policy fund borrowers to apply for and be reviewed for long-term installment repayment if there is a possibility that their loan repayment capacity will improve.

Hwang Youngho, Director of the Micro Enterprise Management Stability Support Division at the Ministry of SMEs and Startups, stated, "With this revision of the enforcement decree, we have established a clear legal basis for public utility fee support and long-term installment repayment of policy funds for micro enterprises. We will implement related policies without disruption and, in the event of future disasters such as COVID-19, execute policies based on accurate data."