"Sixty-Somethings Living Alone Struggle to Access Support Funds... Application Hurdles Grow with Age"

Win-Win Payback application rate only 10.8% among those in their 60s
Application rates drop sharply with age
Different application routes and numerous documents for each program
"Only managed to submit documents with my child's help," applicants say
Ministry of SMEs and Startups considers building an integrated platform
"Implementation will take a long time," officials say

Kim, a 58-year-old who runs a snack restaurant in Siheung, Gyeonggi Province, recently applied for the government-run “Burden Relief Credit” support program but was rejected. After reviewing the documents Kim submitted, the authorities found that the reported sales to the National Tax Service were zero, which did not meet the income criteria. Following the official website instructions, Kim tried to provide additional proof by submitting cash receipt records through the National Tax Service’s Hometax system, but struggled for a long time due to prompts to download various authentication programs. Kim said, “It takes days of effort just to apply for a support program for small business owners,” adding, “This time, I barely managed to submit the supplementary documents with my child’s help.”

A self-employed business owner running a restaurant in Seoul is revising the menu. Asia Economy

As government support programs for small business owners diversify and expand in scale, older adults unfamiliar with digital tools are having difficulty applying. The government plans to overhaul the system by building an integrated platform that allows users to view all the dispersed support programs at a glance and by offering offline training for seniors. However, it is expected to take considerable time to establish this system.

According to data analyzed by Assemblyman Kim Won-i’s office from the Ministry of SMEs and Startups on October 13, the application rate for the “Win-Win Payback” program, implemented this year to boost small business sales and stimulate domestic demand, exceeded 30% for those in their 40s and younger, but plummeted to 10.8% among those in their 60s. The rate dropped sharply below 5% for those in their 70s (4.1%) and those aged 80 and above (1.1%), showing that the older the age group, the lower the application rate.

According to the Ministry of SMEs and Startups, the government’s budget for small business support this year is 5.9 trillion won, the largest ever. If all programs run by government ministries, local governments, and agencies are combined, there are about 1,000 in total. Depending on the responsible institution, application routes are scattered across dozens of portal sites, such as Small Business 24, Guarantee Dream, and the Small Enterprise and Market Service.

With the increasing variety of support programs, older adults unfamiliar with the internet face obstacles from the very first step of identifying how to apply. The process of submitting the required documents for each program-such as the Small Business Certificate, VAT Return, and Regular Employee Certificate-is overly complicated. Because each document is issued by a different authority, applicants must locate the relevant website, download the document, and convert it into the specified file format, which is a high hurdle for older adults to manage.

As of 2023, those aged 60 and older account for 36% of all small business owners. Park, a 62-year-old who runs a cafe in Geumcheon District, Seoul, said, “I failed twice when applying for the delivery fee support program last month, but finally succeeded after submitting supplementary documents over two months.” Park added, “I tried to call the call center listed in the announcement to ask about the application process, but the call volume was so high that I couldn’t get through.”

The government plans to build an “integrated platform” so that all program details, currently scattered across various sites, can be checked in one place, and to streamline the process by linking administrative information between institutions and drastically simplifying the required documents. However, it is expected to take a long time for these changes to become reality.

An official from the Ministry of SMEs and Startups explained, “We are considering building an integrated platform that will strengthen connections between online, offline, and various sites, so that applicants can receive all services from guidance to application in a one-stop process.” The official added, “We are also considering operating an AI-based call center by categorizing complaints using the hundreds of thousands of civil complaint data accumulated so far, but it is expected to take a long time before these measures are actually implemented.”