"Third Disaster Relief Fund Accelerates with Applications Possible as Early as the 8th or 9th"

Small Business Support Fund Announcement on the 6th... Text Messages to be Sent on the 8th-9th, 2-3 Days Earlier
Payments Scheduled to Begin from the Morning of the 11th

[Graphic by Chosun Ilbo, Choi Gilsu]

[Asia Economy Reporter Kim Jong-hwa] The government announced on the 6th the implementation of the third disaster relief fund, the 'Small Business Owner Support Fund,' aiming to complete payments before the Lunar New Year holiday. The application period, originally scheduled for the 11th of this month, will be moved forward by 2 to 3 days, starting around the 8th or 9th. In this case, small business owners are expected to receive the support fund at least half a day earlier than initially planned.

On the 5th, a government official stated, "Since the selection process for recipients is already well underway, the schedule for sending text messages may be advanced by a day or two, and the application date may also be moved forward. If so, recipients will be able to receive the support fund earlier than expected."

According to the Ministry of SMEs and Startups and the Small Enterprise and Market Service, this Small Business Owner Support Fund will be provided to small business owners and self-employed individuals with annual sales of 400 million KRW or less, whose sales have decreased this year compared to last year due to business restrictions or prohibitions caused by the third wave of the novel coronavirus infection (COVID-19).

Once the project is announced, the Small Enterprise and Market Service will first use public data from the National Tax Service and the National Health Insurance Service to select eligible recipients. Initially, text messages were scheduled to be sent to all selected recipients at 9 a.m. on the 11th.

However, at a meeting chaired by the Vice Minister with affiliated organizations of the Ministry of SMEs and Startups on the 4th, since the selection of recipients was already somewhat advanced, opinions were raised questioning the need to wait until the 11th. As a result, the schedule is reportedly being reviewed to be moved forward. The goal is to send text messages earlier so that recipients can apply in advance and receive the support fund as soon as possible.

Therefore, the government plans to send text messages to 2.8 million eligible recipients around the 8th or 9th, 2 to 3 days earlier than planned. Recipients who receive the message are expected to apply through the Small Enterprise and Market Service website over the weekend, enabling the support fund to be paid starting from the morning of the 11th. Under the original schedule, applicants on the morning of the 11th could receive payments no earlier than late that afternoon, but with the schedule moved up, payments can be made even in the morning of the same day.

For those uncomfortable with internet use, local Small Enterprise and Market Service centers will assist

Small business owners who find internet use inconvenient can visit local Small Enterprise and Market Service centers, where staff will assist with the online application process. No separate supporting documents are required for the application, and the support fund is deposited as early as the day of application, or at the latest within 1 to 2 days.

The eligible recipients include small business owners in 11 types of businesses subject to gathering bans, such as five types of entertainment establishments (including entertainment bars), academies, indoor sports facilities, karaoke rooms, direct sales promotion centers, standing performance venues, ski resorts, and sledding parks, as well as 11 types of businesses subject to gathering restrictions, including restaurants, cafes, beauty salons, PC rooms, arcades, multi-rooms, study cafes, movie theaters, amusement parks, large supermarkets, department stores, and lodging businesses.

Small business owners in gathering ban industries, totaling 238,000 people, will receive 3 million KRW each; those in gathering restriction industries, totaling 810,000 people, will receive 2 million KRW each; and small business owners in general industries, totaling 1,752,000 people, will receive 1 million KRW per business. The total number of recipients is 2.8 million, with a total budget of approximately 4.1 trillion KRW.

Additionally, small business owners in gathering ban industries will be offered loans at an annual interest rate of 1.9%, with a limit of 10 million KRW per person, targeting 100,000 people. A separate budget of 1 trillion KRW has been allocated for this. However, the loan application will not proceed simultaneously with the support fund application; the loan application schedule will be finalized once about 90% of the support fund payments have been completed.

Cho Bong-hwan, Director of the Small Enterprise and Market Service, emphasized, "In these difficult times for everyone, all employees of the Small Enterprise and Market Service will do their utmost to ensure that funds are disbursed quickly," adding, "We are fully prepared to ensure that payments are made promptly within 1 to 2 days from the day applications are received."

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