"Burden Reduction Credit Now Usable for Telecommunications Fees and Vehicle Fuel Costs"

Expansion from 7 to 9 Eligible Expense Categories

On August 6, the Ministry of SMEs and Startups announced that it will expand the eligible uses of the "Burden Reduction Credit" to include telecommunications fees and vehicle fuel costs.

Hwang Youngho, Head of the Small Business Management Stabilization Support Group at the Ministry of SMEs and Startups, is conducting a briefing on the burden reduction credit. Ministry of SMEs and Startups

Previously, the credit could be used for seven types of expenses: electricity, gas, and water bills, as well as National Pension, health insurance, employment insurance, and industrial accident insurance. With the addition of telecommunications fees and vehicle fuel costs, the number of eligible expense categories increases to nine.

Currently, for small business owners to use the credit for utility bills, they must pay the utilities such as electricity directly. However, in multi-tenant buildings, utility charges are often included in the building management fees, and since the credit can only be used with the building management company, it was not possible to use the credit in these cases. In response, the Ministry has decided to maintain the current system, which does not require supporting documents, for small business owners in multi-tenant buildings and those experiencing difficulties using the credit. At the same time, to address gaps in support, the eligible uses will be expanded to include telecommunications fees and vehicle fuel costs.

However, given that small business owners expressed significant concerns about the documentation process during last year’s electricity bill support program, the Ministry plans to monitor the implementation of the credit and will consider allowing payment for utilities included in management fee invoices at a later stage.

The Burden Reduction Credit is a program that provides digital points worth up to 500,000 won to help small business owners reduce their fixed costs. The points are credited to a card registered by the business owner and can be applied for through the official website, "burdenreductioncredit.kr." Applications are open until November 28, but may close earlier if the budget is exhausted. The credit can be used until December 31.

Since applications opened on July 14, 2.6 million businesses have applied for the Burden Reduction Credit in just three weeks. The Ministry plans to select 2.1 million businesses through a review of eligibility and other criteria.

Hwang Youngho, Head of the Small Business Management Stabilization Support Group, said, "With this expansion of eligible uses, we expect that small business owners who have been left out of support will be able to utilize the credit more broadly. We will continue to listen to feedback from the field and further improve our policies."