2.8 Million Small Business Owners to Receive 'Buteimmok Fund' Starting from the 11th

Third Disaster Relief Fund: 3 Million Won for Businesses Under Gathering Ban, 2 Million Won for Those with Operating Restrictions

[Asia Economy Reporter Kim Jong-hwa] The Ministry of SMEs and Startups announced on the 6th that starting from the 11th, it will provide support funds to 2.8 million small business owners who are experiencing business suspension, operation restrictions, and sales decline due to strengthened social distancing measures.

The scale of the support fund is about 4.1 trillion KRW, which is the sum of the 3.5575 trillion KRW contingency fund approved by the Cabinet meeting on the 5th and the remaining 500 billion KRW from the New Hope Fund.

◆ Eligibility and Amount = Small business owners who have been subject to business suspension or operation restrictions due to strengthened quarantine measures by the Central Disaster and Safety Countermeasure Headquarters or local governments since November 24 last year will receive 3 million KRW or 2 million KRW respectively. In addition to the 1 million KRW business damage support fund, an additional 2 million KRW or 1 million KRW will be provided to businesses under business suspension or operation restrictions to alleviate fixed costs such as rent.

Small business owners who complied with business suspension or operation restrictions under social distancing level 2.5 in the metropolitan area and level 2 in non-metropolitan areas are eligible. Support is also provided to those affected by additional quarantine measures implemented by local governments.

Furthermore, outdoor winter sports facilities (including affiliated businesses) that were closed due to special year-end and New Year quarantine measures implemented from December 24 last year, as well as lodging facilities under operation restrictions, are included in the support targets. Businesses that violated business suspension or operation restriction orders are excluded from support and will be subject to recovery if violations are confirmed.

General small business owners with annual sales of 400 million KRW or less last year and whose 2020 sales decreased compared to 2019 will receive 1 million KRW. Newly opened businesses last year will be supported if their annualized sales from September to December are 400 million KRW or less and their December sales are less than the average monthly sales from September to November.

Support is provided only to businesses opened before November 30 last year for both business suspension/operation restriction sectors and general sectors. Gambling-related industries, real estate rental businesses, and professional occupations excluded from small business policy fund loans are not eligible for the support fund.

◆ Application and Payment Schedule = The support fund will be paid starting from the 11th. Eligible recipients include small business owners identified through administrative information as being in business suspension/operation restriction sectors and those who have already received the New Hope Fund due to sales decline. However, for general sectors supported due to sales decline, if an increase in last year's sales reported to the National Tax Service is confirmed, the support fund will be reclaimed.

Small business owners who receive a text message on the 11th and apply immediately can expect payment as early as the afternoon of the 11th or the morning of the 12th. Small business owners who did not receive the New Hope Fund after filing VAT returns and whose 2020 sales decreased compared to 2019 can also apply for the support fund.

If sales are reported by the previous VAT filing deadline of January 25, payment is expected as early as mid-March. However, due to the extension of the VAT filing deadline, payment for small business owners filing sales after the 25th may be delayed.

◆ Guidance = Starting from the 7th, applicants can also receive guidance through a call center for convenience. The Ministry of SMEs and Startups does not request account passwords or OTP numbers related to the support fund application, so caution is advised.

Detailed support criteria, text message schedules, application procedures, and more comprehensive plans for the support fund can be found in the Small Business Support Fund implementation announcement on the Ministry of SMEs and Startups website, and will be announced in a briefing on the 11th.

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