[Small Business Second Loan] First Day of Applications More Relaxed Than Expected... "Impact of Demand Dispersion, etc." (Comprehensive)

Disaster Relief Fund On-Site Applications Overlapped but No Confusion
"Demand Seems Divided Due to Existing Secondary Loan Support"
"Different Service Counters for Relief Fund Prevent Major Congestion"

Due to the impact of COVID-19, the wrinkles of small business owners and self-employed people are deepening, and on the 30th, the kitchen street in Hwanghak-dong, Seoul, is quiet. Photo by Moon Honam munonam@

[Asia Economy Reporters Kim Hyo-jin and Yoo Byung-don] "For elderly people like us, it is difficult to apply for the emergency disaster relief fund online. I came early today because I heard they would accept applications at the bank counter starting today, and fortunately, there aren't as many people as I expected." (Choi Young-soo, 76, pseudonym, resident of Jung-gu, Seoul)

"I was worried because the pre-application date for the second emergency loan for small business owners and the on-site application date for the emergency disaster relief fund overlapped, but so far there hasn't been much congestion." (Loan officer at Woori Bank Euljiro branch)

On the 18th, when the government’s disaster relief fund on-site application related to the novel coronavirus infection (COVID-19) and the pre-application for the second emergency loan for small business owners started simultaneously, people who wanted to apply for loans and disaster relief funds gathered one after another at commercial bank branches as soon as they opened at 9 a.m. Despite the early hour and the implementation of a 5-day rotation system for the disaster relief fund, contrary to concerns, there was no major congestion.

Kim Sang-hyun (44), a self-employed person who visited Kookmin Bank Euljiro branch, said, "My store is in Myeongdong, and since the disaster relief fund application date overlapped, I came early to apply for the loan." He added, "I inquired at the bank last week and was told that the review would proceed in the order of application, so I prepared the documents in advance and hurried to visit."

Park Sung-joong (59), who runs a business nearby, applied for both the government disaster relief fund and the small business loan at this location at the same time. Except for corporate credit card companies, bank-affiliated credit cards such as Shinhan, Kookmin, Woori, Hana, and Nonghyup cards accept applications at their respective financial group bank branches, while BC Card accepts applications at 15 affiliated financial institutions. Park said, "I waited about 10 minutes to apply for the disaster relief fund and did not wait long for the small business loan," adding, "As long as the documents are prepared correctly, the procedure does not seem very complicated."

Jang Min-sook (61, pseudonym), who visited Woori Bank Euljiro branch, said, "There were many reports over the weekend that the counters might be crowded, so I came early, but it seems there are fewer people than expected." However, perhaps because small-scale self-employed businesses are densely located nearby, the number of people waiting quickly increased to about 5 to 6.

On the first day of on-site registration for the emergency disaster relief fund provided by the government to all citizens due to the novel coronavirus infection (COVID-19) crisis, a citizen is receiving consultation related to the emergency disaster relief fund at the Woori Bank headquarters in Jung-gu, Seoul on the 18th. Photo by Mun Ho-nam munonam@

A Woori Bank branch official explained, "There is still remaining funding for the second loan’s ultra-low interest rate (1.5%) loan with interest subsidy that started earlier, so demand is dispersed. Also, since the counters handling the government disaster relief fund and small business loans are different even within the branch, work is distributed, so there is no significant congestion."

At the Eup/Myeon/Dong community centers, which serve as application counters for disaster relief prepaid cards or gift certificates, there was a bustling crowd of residents waiting from early hours. At some community centers, loud arguments broke out over application criteria. On this day, a long line of residents formed from 9 a.m., the start of business hours, in the auditorium on the 4th floor of Yangpyeong 2-dong Community Center in Yeongdeungpo-gu, Seoul.

Following the guidance of community center staff, applicants filled out application forms, then moved to the waiting room to receive a number ticket and waited for their turn. Similar to online applications, a 'day-of-week system' was applied, allowing only those whose birth year ends in 1 or 6 to apply, but within just one hour, the number of applicants exceeded 40.

Although the application procedure was expected to be somewhat complicated and cumbersome, residents’ responses were positive. Once a resident submitted the application, a prepaid card matching the number of household members was immediately issued. Since this prepaid card requires computer processing at the community center, it can be used starting 2 to 3 days later.

Park Wi-rye (69, pseudonym), who visited the community center with her husband, said, "The application process was simpler than I thought, which was good," adding, "The 600,000 won is a significant amount for us, and it will be useful for living expenses."

There were also loud disputes on-site. A resident who tried to apply for the disaster relief fund protested to the community center staff after being excluded from eligibility because their household did not meet the health insurance premium criteria. The resident angrily said, "I am the head of the household, but since the health insurance is registered under my parents, it doesn’t make sense that I can’t receive the disaster relief fund."

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