[Why the Government] Support for Small Businesses Includes Danranjumeok but Excludes Yuhengjumeok? ... The Criterion is the Presence of 'Jeopgaegwon'

Government Faces Controversy Over 3.2 Trillion Won Small Business New Hope Fund Payment Criteria
Government Deems Support for Entertainment Businesses Difficult

On the 19th, the government strengthened social distancing measures in the Seoul metropolitan area to curb the explosive spread of the novel coronavirus infection (COVID-19). Gatherings and events with more than 50 people indoors and more than 100 people outdoors are, in principle, prohibited until the 30th of this month. This applies not only to exhibitions, public hearings, commemorative ceremonies, and recruitment exams but also to private gatherings such as weddings, alumni meetings, 60th birthday parties, funerals, and first birthday parties, which cannot be held with many people present. Twelve types of high-risk facilities will be required to suspend operations. These facilities include clubs, room salons, and other entertainment bars, colatecs, danran bars, emotional bars, hunting pochas, karaoke rooms, indoor standing concert halls, indoor group exercise (intense GX types), buffets (including those in wedding halls), PC rooms, direct sales promotion centers, and large academies (with 300 or more people). The photo shows the scene of the Youth Street in Jonggak, Seoul, on that day. Photo by Moon Honam munonam@

[Sejong=Asia Economy Reporter Kim Hyunjung] The 7.8 trillion won scale of the 4th supplementary budget (supplementary budget) announced by the government is, as expected, a continuous series of controversies and confusion. This is because support is only available if you operate a business in a specific industry or meet the criteria set by the government. Regardless of the method chosen, it is difficult to accurately support individual circumstances, and there will inevitably be false claims and blind spots.

The most controversial part is the payment criteria for the 3.2 trillion won scale of the Small Business New Hope Fund, which accounts for the largest portion of this 4th supplementary budget. First, based on the industry, nationwide high-risk facilities such as buffets, karaoke rooms, PC rooms, and indoor gyms, reading rooms, and academies in the metropolitan area subject to gathering restrictions or bans will receive support of 1.5 to 2 million won regardless of sales volume. This differs from the general industries, where support of 1 million won is provided only if the annual sales are below 400 million won and a decrease in sales in August compared to the average of June and July is confirmed.

However, entertainment, pleasure, gambling industries, and professions such as lawyers, hospitals, specialists, and real estate lessors are excluded from the 'general industry' support. Among the specially affected industries, entertainment pubs and dance hall operators (Colatec) are excluded. However, places generally considered entertainment pubs, such as Danran pubs, emotional pubs, and hunting pochas, can receive 2 million won in support.

On the 19th, the government strengthened social distancing measures in the Seoul metropolitan area to curb the explosive spread of the novel coronavirus infection (COVID-19). Gatherings and events with more than 50 people indoors and more than 100 people outdoors are, in principle, prohibited until the 30th of this month. This applies not only to exhibitions, public hearings, commemorative ceremonies, and recruitment exams but also to private gatherings such as weddings, alumni meetings, 60th birthday parties, funerals, and first birthday parties, which cannot be held with many people present. Twelve types of high-risk facilities will be required to suspend operations. These facilities include clubs, room salons, and other entertainment bars, colatecs, danran bars, emotional bars, hunting pochas, karaoke rooms, indoor standing concert halls, indoor group exercise (intense GX types), buffets (including those in wedding halls), PC rooms, direct sales promotion centers, and large academies (with 300 or more people). The photo shows the scene of the Youth Street in Jonggak, Seoul, on the day. Photo by Moon Honam munonam@

The biggest difference is the presence or absence of 'jeopgaegwon' (hostesses). Jeopgaegwon can be described as employees who provide services to entertain customers, and places employing jeopgaegwon are considered entertainment pubs and excluded from support. A Ministry of SMEs and Startups official explained, "According to the Small Business Policy Fund operation guidelines, Danran pubs have been policy-supported small businesses, but entertainment pubs have not," adding, "The easiest way to understand the biggest difference is whether or not there are jeopgaegwon."

It is usually difficult for users to distinguish between Danran pubs and entertainment pubs due to illegal operations. Many operate as actual entertainment pubs by hiring jeopgaegwon under the signboard of Danran pubs. Although occasional on-site inspections occur, during this support process, high-risk facilities were closed due to the government's social distancing measures, and on-site inspections are likely to be omitted for the sake of support speed. The Food Sanitation Act defines entertainment pubs as "businesses mainly cooking and selling alcoholic beverages, employing entertainment workers (jeopgaegwon), or installing entertainment facilities, where customers are allowed to sing or dance."

The reason dance hall operators are excluded is also understood to be due to their strong pleasure nature. Related laws define dance halls as businesses operating dance halls or similar venues without serving alcohol or meals. In effect, they are excluded from support according to the Emotional Labor Act. However, some local governments allow dancing even within general restaurants through ordinances, and the difference in regulatory intensity may also lead to controversy during this support process.

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