3.8 Trillion Won Support Fund Paid to 2.71 Million Small Business Owners... "Payment Rate 97%"

From the 15th, 'Reservation Before Visit Application' for Small Business Owners Having Difficulty with Online Applications

On the 13th, small business owners affected by the resurgence of the novel coronavirus infection (COVID-19) are receiving consultations related to the Support Fund (3rd Disaster Relief Fund) at the Seoul Jungbu Center of the Small Enterprise and Market Service. Photo by Moon Honam munonam@

[Asia Economy Reporter Kim Heeyoon] Since the disbursement began on the 11th of last month, a total of over 2.7 million small business owners have received 3.773 trillion KRW in the Support Fund (3rd Disaster Relief Fund) over 26 days.

On the 10th, the Ministry of SMEs and Startups announced that from January 11 to February 5 this year, a total of 2.71 million small business owners applied for the Support Fund, and a total of 3.773 trillion KRW was paid to them.

The Ministry added that out of the 2.8 million eligible recipients, 97% have been supported, exceeding the initial goal of 90% payment before the Lunar New Year holiday by 7 percentage points.

The Support Fund provides 3 million KRW to businesses subject to gathering bans, 2 million KRW to businesses with operational restrictions, and 1 million KRW to general businesses whose sales have decreased due to the third wave of COVID-19. However, general businesses must meet the condition of having annual sales of 400 million KRW or less.

Among general small business owners with annual sales of 400 million KRW or less and decreased sales compared to the previous year, 1.775 million (65.5%) received a total of 1.775 trillion KRW in Support Funds.

Additionally, small business owners in gathering ban and operational restriction sectors accounted for 34.5% of all recipients, totaling 934,000 people who received 1.998 trillion KRW. Among them, 611,000 operating restaurants and cafes received 1.222 trillion KRW in Support Funds. Following were 84,000 in beauty and hair salons (169 billion KRW), 81,000 in academies and private institutes (206 billion KRW), 49,000 in indoor sports facilities (129 billion KRW), 32,000 in five types of entertainment establishments (96 billion KRW), and 26,000 in karaoke rooms (69 billion KRW) who received Support Funds in that order.

Meanwhile, the Ministry explained that until the 26th of this month, an online ‘verification payment’ will be conducted targeting small business owners who are eligible for the Support Fund according to administrative information but require document submission, such as those with joint representative power of attorney or nonprofit organizations certified as social enterprises.

In particular, for those who have difficulty applying online among the verification payment targets, an exceptional ‘reservation-based in-person application’ will be operated from the 16th to the 26th. This is limited to small business owners who cannot complete online identity verification or wish to receive the support fund through a proxy.

Reservations can be made starting from 9 a.m. on the 15th via the Support Fund website.

A Ministry official stated, "The ‘second rapid payment,’ which adds eligible recipients based on the 2020 VAT filing, will be conducted after the filing is completed in March. Those who filed by January 25 will receive payments after mid-March, and those who filed by February 25 will receive payments after the end of March."

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