Only 6 out of 10 Small Business Owners Are "Satisfied" with Disaster Relief Funds

Source: Korea Federation of Micro Enterprise Associations

[Asia Economy Reporter Moon Hyewon] Only about 6 out of 10 small business owners nationwide expressed 'satisfaction' with the government's emergency disaster relief fund support system related to the novel coronavirus disease (COVID-19) crisis.

According to an online survey conducted by the Korea Federation of Small and Medium Business from the 22nd to the 27th among 758 small business owners nationwide in retail, food service, personal services, and other sectors, 445 respondents (59.3%) answered that they were 'satisfied' with the emergency disaster relief fund support system. Specifically, 88 respondents (11.7%) said they were 'very satisfied,' and 357 (47.6%) said they were 'satisfied.'

Respondents who answered 'not sure' were 171 (22.8%), those who answered 'not satisfied' were 97 (12.9%), and those who answered 'very dissatisfied' were 37 (4.9%).

When asked about the impact of the emergency disaster relief fund, which was first distributed on the 13th, on the business activities of small business operators, the largest group of respondents, 319 (42.6%), answered 'no significant impact so far.' This was followed by 'somewhat positive' with 252 (33.6%), 'very positive' with 68 (9.1%), 'very negative' with 59 (7.9%), and 'somewhat negative' with 51 (6.8%).

Satisfaction levels notably differed by industry. Among those in accommodation and food service and retail sectors, the main users of the support fund, 47% (210 out of 443) responded that the fund had a positive impact on their businesses. In contrast, among manufacturing, personal services, transportation, warehousing and telecommunications, automobile repair, real estate, rental and service industries, and educational services, only 35.4% (110 out of 310) responded positively.

When asked about the expected changes in local commercial districts and regional economies due to the support fund, 63% (472 respondents) said 'somewhat improved,' while 24.6% (184 respondents) said 'no change.'

Regarding the form of use of the support, 'credit/check cards' accounted for the largest share at 64.3% (479 respondents), followed by 'prepaid cards' at 13.8% (103 respondents), and 'local love gift certificates' at 13.2% (98 respondents).

A representative from the Korea Federation of Small and Medium Business stated, "Since the support system is still in its early stages, the benefits have not yet spread warmly across all small business owners, and there is a significant difference in perceived impact depending on the industry."

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