Small Business Owners "Will Close if COVID-19 Prolongs... Request Separate Disaster Relief Payments"

The economic downturn for self-employed business owners continues as external uncertainties and rising oil prices overlap. On the 4th, a store in the underground shopping center at Gangnam Station, Seoul, hung a notice announcing its closure and operated on its last day. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Moon Hyewon] It has been revealed that most small business owners experienced a deterioration in their business activities due to the novel coronavirus infection (COVID-19) crisis.

According to the Small Business Federation on the 10th, an online survey was conducted targeting 1,392 small business owners nationwide in sectors such as wholesale and retail, dining, and personal services. When asked about the impact of the COVID-19 crisis on their business activities, 81.7% (1,119 people) responded "very negative," and 15.1% (207 people) responded "somewhat negative."

Since the COVID-19 crisis, the sales level of business establishments compared to the same period last year showed that "more than -50%" accounted for the highest at 28% (385 people). This was followed by "more than -80%" at 20.8% (287 people).

The estimated damage amount was highest for "between 1 million and less than 5 million KRW" at 32% (441 people), followed by "between 5 million and less than 10 million KRW" at 23.1% (318 people).

Among business expenses after the COVID-19 crisis, the largest burden was "rent," accounting for 38.6% (530 people). This was followed by "labor costs" at 25.9% (355 people) and "loan interest" at 17.9% (246 people).

Regarding employee employment after the COVID-19 crisis, 39.1% (529 people) answered that they "reduced staff or implemented leave of absence measures." Only 17.3% (234 people) maintained the same number of employees. If the COVID-19 crisis prolongs, 40.7% (522 people) said they are considering additional employment reductions, and 38.7% (496 people) responded that they would "replace employment with family members."

Regarding government and local governments' support policies for small business owners, 41% (564 people) were "not satisfied," and 39.1% (538 people) were "very dissatisfied." Only 12.3% (170 people) said they were "satisfied."

The most urgent government support policy requested was "separate disaster relief funds for small business owners" at 37.9% (522 people), followed by "rent support" (19.5%, 268 people) and "expanded financial support" (9.1%, 125 people).

A representative of the Small Business Federation stated, "Small business owners have no choice but to consider closing their businesses if the crisis prolongs," and added, "This can be interpreted as a demand for separate disaster relief funds for small business owners."

This content was produced with the assistance of AI translation services.