Government Accelerates Additional Support for COVID-19 Affected Small Businesses... 2nd Financial Support Starting from the 23rd

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[Sejong=Asia Economy Reporter Joo Sang-don] The government is accelerating additional support for small business owners struggling due to the novel coronavirus infection (COVID-19). From the 23rd, loans under the second financial support program will be available.

On the 18th, Kim Yong-beom, First Vice Minister of the Ministry of Economy and Finance, held the '26th Innovation Growth Strategy Review Meeting and Policy Review Meeting' at the Government Seoul Office and said, "The 12 banks currently implementing the second program are preparing in advance, including building computer systems, and loans under the revised plan will be available from the 23rd."

The government has fully expanded and reorganized the second financial support program for small business owners to alleviate difficulties caused by COVID-19. The support limit has been increased from 10 million won to 20 million won, and the requirements have been relaxed so that small business owners who have already received support can receive additional assistance.

Additionally, to support small business owners affected by strengthened quarantine measures, the government has established the Small Business New Hope Fund (2.91 million people, 3.2 trillion won) and the Closed Store Rechallenge Incentive (200,000 people, 100 billion won), and further expanded special guarantees and emergency management stabilization funds. The Small Business New Hope Fund will support small business owners with annual sales under 400 million won who have experienced decreased sales due to the resurgence of COVID-19. Specially affected industries will receive payments regardless of sales size or decrease if they are small business owners.

Earlier, the government also decided to strengthen policy support to help small business owners gain competitiveness in the digital era. Through the establishment of a small business big data platform, management and commercial district information will be provided, and by expanding simple payment methods, the burden of payment fees will be reduced to the 1% range (currently 2-4%). Furthermore, 400 billion won in policy funds and 200 billion won in special guarantees will be provided to promote digitalization of workplaces, purchase of smart equipment, and use of smart technologies.

To spread digitalization in small business workplaces such as traditional markets and stores, by 2025, 500 digital traditional markets equipped with online delivery systems, 100,000 smart stores introducing robots, and 10,000 smart workshops will be distributed. By 2022, a pilot project called 'Digital Commercial District Renaissance' will be promoted in three locations where these are concentrated. Also, by 2025, customized on-site training will be conducted for 50,000 digitally vulnerable groups such as middle-aged people, and a win-win cooperation fund of 40 billion won will be established by 2023 to distribute 200,000 kiosks and digital payment terminals to small business owners.

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