"Support Fund, a Drop in the Bucket"

"Small Amount but Less Worry About Rent"... 1.01 Million People and 1.4 Trillion Won Paid on First Day

On the first day of application and payment for the third disaster relief fund (Support Fund) for small business owners and vulnerable employment groups affected by the third wave of the novel coronavirus infection (COVID-19) on the 11th, citizens are receiving related consultations at the Small Enterprise and Market Service Seoul Jungbu Center. Photo by Moon Honam munonam@

[Asia Economy Reporters Kim Jong-hwa, Kim Hee-yoon] "The intention is appreciated, but compared to the losses, it is not a big help."

This is the complaint of Kim Tae-seong, who runs 'Seoul Tteokjip' at Sanseong Traditional Market in Daejeon. On the morning of the 11th, Kim received a notification message, applied for the Support Fund, and received 1 million won in the afternoon. Sanseong Traditional Market, where Kim's tteok (rice cake) shop is located, saw fewer visitors as social distancing was raised to level 2.5 due to the third wave of the COVID-19 pandemic. Customers looking for tteok almost disappeared.

The tteok shop's busiest seasons are holidays and year-end/new year periods. Kim said, "Since gatherings of five or more people are prohibited, group orders have completely stopped," adding, "Even the tteok for New Year's rice cake soup didn't sell well, and the ones we made in smaller quantities still remained."

Before COVID-19, Kim supplied tteok to nearby churches, temples, and various gatherings around the year-end and new year, earning about 80 million won. This year, during the same period, sales were less than a quarter of that. After paying rent and employee salaries, Kim says there is practically nothing left.

The situation for the tteok shop is relatively better. Lee Mi-young (a pseudonym), who runs a hof (pub) in Gangbuk-gu, Seoul, reported cumulative losses of 60 million won due to business restrictions since August last year. Still, Lee said, "I am grateful even for the 2 million won Support Fund," adding, "Although it is just a fleeting amount, it eased my worries about this month's rent and gave me a moment to breathe."

Confusion arose regarding eligibility and the amount of support. On an internet community, comments such as "I was subject to closure but not on the application list," and "I thought I could receive 2 million won, but the inquiry result shows only 1 million won" flooded in. While most responded with "I'm grateful for even this," controversies over compensation criteria and amounts may not easily subside.

Bang Ki-hong, president of the Korea Federation of Small Business Owners and Self-Employed, said, "In a situation where we don't know how much more damage will occur, providing support funds equivalent to one month's rent for self-employed and small business owners is like a drop in the bucket," adding, "Policies that practically compensate for small business losses and activate domestic consumption are necessary for the actual recovery of small business damages."

According to the Ministry of SMEs and Startups, on the first day of online applications for the Small Business Support Fund (as of 9 a.m. on the 12th), 1.01 million people received 1.4 trillion won. On the 12th, small business owners with even-numbered business registration numbers could apply, and from the 13th, applications are open regardless of odd or even numbers. For small business owners who are not recognized as eligible, it may be due to delayed submission of data from local governments.

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