Small Business Support Fund 1 Million Won... Excluding Certain Sectors Such as Entertainment and Gambling

On the 23rd, when social distancing level 2 was expanded nationwide, a large shopping mall in Yeongdeungpo, Seoul, showed a deserted appearance. Photo by Dongju Yoon doso7@

[Asia Economy Reporter Song Seung-yoon] The 'New Hope Fund' to support small business owners affected by the novel coronavirus infection (COVID-19) is expected to be paid except for certain industries.

According to the Ministry of Economy and Finance on the 13th, the government plans to announce guidelines soon by organizing the payment industry criteria for the New Hope Fund, which involves an investment of 3.2 trillion won, using a negative list approach.

The government will provide 1 million won to small business owners with annual sales of 400 million won or less whose sales have decreased due to COVID-19. However, not all small business owners who meet the sales scale and decrease criteria will receive the support fund.

The government plans to apply the existing classification of 'small business policy fund loan exclusion industries' to determine the excluded recipients for this support payment.

Major excluded industries include entertainment and gambling industries, which are socially difficult to support, professional occupations such as lawyers, accountants, and hospitals, and real estate rental industries that include high-net-worth individuals.

Among gambling and gambling-related industries, lottery sales, horse racing, cycle racing, motorboat racing magazine publishing, gambling machines and gambling-related or unhealthy amusement equipment wholesale and retail and rental businesses, prize voucher issuance and sales, racetrack and animal racecourse operations, adult arcades, PC rooms, and telephone rooms are excluded.

In entertainment-related industries, tobacco brokerage and wholesale including electronic cigarettes, adult product stores, rest hotels, kiss rooms, conversation rooms, steam baths, and massage parlors are not eligible for support funds.

Among professional occupations, pharmacies, veterinary hospitals, health services, legal, accounting, and tax-related legal services, customs brokers, financial services, insurance and pension industries, appraisal services, detective and investigation services, credit investigation and debt collection agencies are excluded from payment.

Additionally, industries dealing with high-priced products or services or including high-net-worth individuals, such as fur product wholesale (excluding artificial fur), golf course operations, real estate rental businesses, and real estate consulting services, are also excluded from receiving support funds.

However, real estate management businesses and real estate advisory and brokerage businesses that have been operating for more than six months are included in the support target, so small-scale real estate businesses are expected to receive support funds.

The government has also decided to exclude multi-level marketing sales businesses and fortune-telling and similar service businesses such as fortune-telling shops, shamans, and spiritual houses from the support target. Individual taxis are considered small business owners and will receive support funds, but corporate taxis are not eligible.

Online businesses will receive support funds if they continue operations and meet criteria such as sales amount and sales decrease. Internet clothing shopping malls are expected to benefit. However, among online businesses, gambling-related industries such as online game item and game avatar brokerage businesses will not receive support funds.

Among the industries subject to a uniform payment of 2 million won regardless of sales scale or decrease, entertainment pubs such as room salons and dance halls such as colatecs are excluded from support.

Other high-risk facilities subject to gathering bans, such as karaoke bars, emotional pubs, hunting pubs, singing practice rooms, indoor standing concert halls, indoor group exercise (intense GX types), buffets, PC rooms, direct sales promotion centers (except multi-level marketing), and academies with 10 or more people, will all receive support funds.

General restaurants, rest food establishments, and bakeries located in the metropolitan area, which are gathering-restricted industries due to the implementation of social distancing level 2.5, will receive 1.5 million won in support funds. Franchise-type cafes and beverage specialty stores located in the metropolitan area are also eligible for this support payment.

However, bathhouses, which were restricted from receiving more than 50 customers at once but were not limited in operation, fall under the 1 million won support payment subject to sales scale and decrease criteria.

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