"Disaster Relief Funds Not Even Enough for One Month's Rent"…Frustrated Small Business Owners Express Outrage

[Image source=Yonhap News]

[Asia Economy Reporters Lee Ji-eun and Lim Chun-han] "The president mentioned rent support, giving false hope, and now says 3rd disaster relief funds will provide 3 million won. 3 million won is roughly the monthly rent for a 20-pyeong store in Seoul." (President of the Korea Federation of Small and Medium Business)

"Dining businesses are restricted to operating until 9 PM and are unable to enjoy even the year-end peak season." (President of the Korea Foodservice Industry Association)

At the "Emergency Video Conference on Small Business Issues" held by the People Power Party at the National Assembly main building on the 30th, heads of associations related to small businesses voiced difficulties caused by COVID-19 and demanded government support.

Jung Won-seok, head of the Korea Federation of Small and Medium Business, said, "In a national disaster situation, it is regrettable to provide 'blind support' from the budget without any criteria for calculating damage from the disaster," adding, "They give false hope about rent support and then provide 3 million won, but the average monthly rent for a 20-pyeong store in Seoul is 3 million won."

He also raised his voice against the amendment to the Labor Standards Act proposed by Democratic Party lawmaker Lee Soo-jin, saying, "Proposing a bill to apply the Labor Standards Act to workplaces with fewer than five employees during the COVID-19 crisis is basically telling us to die."

Gye Sang-hyuk, president of the National Convenience Store Franchise Association, also complained, "(Convenience stores) are not eligible for disaster relief funds," adding, "50% of convenience store sales come from cigarettes, and if cigarette prices had not increased, we would have received a considerable amount, but there is nothing to receive." The 3rd disaster relief fund has a condition of annual sales below 400 million won, so convenience stores are inevitably excluded based on sales criteria.

Kwon Oh-bok, executive vice president of the Korea Foodservice Central Association, said, "COVID-19 has lasted nearly a year, and we are going through a very difficult time without even enjoying the year-end peak season," adding, "To revitalize restaurant operations, companies and government offices should apply differential lunch hours and resolve the issue by shortening leaving times."

[Image source=Yonhap News]

Gyeong Gi-seok, president of the Coin Karaoke Association, said, "Among industries excluding entertainment, coin karaoke rooms have suffered the most severe damage due to COVID-19," emphasizing, "However, during the 2nd disaster relief fund, businesses under gathering bans received the same 2 million won."

He said, "It does not make sense logically," and added, "The government should not only implement pinpoint quarantine but also provide pinpoint support by thoroughly investigating which industries have suffered how much damage."

At the meeting, Lee Jong-bae, policy chief of the People Power Party, said, "Looking at the government's announced damage support measures, it is like 'pissing on a broken leg' (a futile effort)," and raised his voice, "They say they will give small business owners 3 million won, but it should be 5 million won." He also advocated for waiving water and sewage fees for three months and loan interest exemptions.

Lawmaker Lim E-ja said, "I am well aware of small business owners' concerns about applying the Labor Standards Act to workplaces with fewer than five employees," and criticized, "Small business associations and related organizations are busy with livelihood issues and cannot act systematically, so the Moon administration is pushing through recklessly." Lawmaker Choi Seung-jae emphasized, "Let's create a petition list with one million signatures next year to block the application of the Labor Standards Act to workplaces with fewer than five employees."

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