Small Business Easy Payment Disaster Relief Fund, Economic Ripple Effect '2.7 Times'

68.8% Occurs at Small Business Stores
Great Help for Small Business Owners with Sales Under 800 Million Won

Usage status of disaster relief funds for small business owners' simple payment (136.3 billion KRW). Table provided by Small Enterprise and Market Service.

[Asia Economy Reporter Kim Heeyoon] It has been found that the production value-added inducement effect of disaster relief funds used in Seoul through small business owners' simple payment was 2.7 times. The employment inducement effect was also found to be 2,312 people.

The Ministry of SMEs and Startups and the Small Enterprise and Market Service announced on the 17th that they analyzed the economic ripple effect using data of 136.3 billion KRW of disaster relief funds used through small business owners' simple payment (Zero Pay) in Seoul, and the results showed this.

This estimate analyzed the economic effect of disaster relief funds used through simple payment (Zero Pay) by assuming that the amount of disaster relief funds used was linked to an increase in consumer spending, based on data from the Korea Simple Payment Promotion Agency and using the 2015 regional input-output table (Bank of Korea) by the Small Enterprise and Market Service.

According to the analysis results, the production inducement effect from this simple payment (Zero Pay) was estimated at 252.9 billion KRW (1.9 times), the value-added inducement effect at 116.9 billion KRW (0.9 times), and the employment inducement effect totaled 2,312 people.

Among the economic ripple effects of the disaster relief funds, 68.8% occurred at small business owner stores. In particular, small business owner stores with sales under 800 million KRW experienced the greatest benefit, with 226.4 billion KRW in production and value-added inducement effects and 1,424 people in employment inducement effects.

By industry, the distribution service sector such as wholesale and retail trade saw 230.5 billion KRW in production and value-added inducement effects and 1,420 people in employment inducement effects, while the personal service sector such as restaurants experienced 126.4 billion KRW in production and value-added inducement effects and 831 people in employment inducement effects.

A Small Enterprise and Market Service official said, “Although this analysis is limited as it only analyzed 13.63 billion KRW used through small business owners' simple payment in the Seoul area out of the total 18 trillion KRW of disaster relief funds, it appears to have been a great help to small business owners struggling due to COVID-19.”

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