Business Closure Reporting Simplified... Extension of Startup Fee Exemption Period

[Asia Economy Reporter Moon Hyewon] In the future, the inconvenience of having to reissue lost or damaged permits and registration certificates when filing a business closure report will disappear, and the exemption period for burdens such as electricity and waste for startup manufacturing companies will be extended from 3 years to 7 years.

The Small and Medium Business Ombudsman announced on the 14th at the Seoul office that it has improved the business closure reporting procedures and the burden exemption system for startup companies to ease the burdens on small and medium enterprises and small business owners struggling due to COVID-19.

For certain industries such as telemarketing and animal hospitals, submission of permits or registration certificates is mandatory when filing a business closure report. However, there has been no exception clause in the law for cases of loss or damage, causing ongoing inconvenience due to the need to undergo reissuance procedures.

The Ombudsman conducted a detailed review of all laws related to business closure reporting, identified 14 laws requiring amendments, and held consultations last month with six ministries including the Ministry of Agriculture, Food and Rural Affairs on “Measures to Simplify Various Business Closure Reporting Procedures.”

As a result, each relevant ministry agreed to establish an exception rule by the end of this year allowing submission of a loss statement in lieu of lost or damaged permits or registration certificates when filing a business closure report, and to add a “Reason for Loss” entry field to the business closure report form.

The Ombudsman explained that this is expected to improve the inconvenience in business closure reporting procedures for a total of 34 industries.

Park Joobong, the Ombudsman, said, “The number of yellow umbrella insurance claims paid to small business owners upon closure increased by 20.2% in the first quarter of this year compared to the previous year,” and added, “We will make multifaceted efforts in regulatory innovation for economic recovery so that small and medium enterprises and small business owners can prepare for a new start.”

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