Multi-Location Business Owners, How Much COVID-19 Support Will They Receive? Details on Methods and Scale Remain Unclear

Government: "Some parts not yet finalized... Final announcement upon project notice"

[Sejong= Asia Economy Reporter Kim Hyunjung] The government announced that it will increase the support scale for business owners operating multiple stores through customized COVID-19 damage relief measures. However, detailed criteria to estimate the final amount to be received have not yet been established. While broad standards have been set, such as a maximum of 10 million KRW for business owners operating multiple establishments under the Emergency Relief Fund and up to 1.8 million KRW (for three months) for electricity bill reductions, additional discussions are needed regarding cases where support amounts differ by establishment or whether overlapping benefits for bill reductions are allowed.

According to the Ministry of Economy and Finance and the Ministry of SMEs and Startups on the 2nd, detailed support criteria for individuals operating multiple businesses, announced as part of the government's customized COVID-19 damage relief measures that day, are still under discussion among related ministries and the ruling party.

The disclosed support plan focuses on assisting small business owners and vulnerable employment groups who could not operate normally due to government quarantine guidelines amid COVID-19. The measures include ▲ 8.1 trillion KRW (5.64 million people) in emergency damage relief funds for small business owners and vulnerable employment groups, including the Emergency Relief Fund Plus and electricity bill reductions ▲ 2.8 trillion KRW (810,000 people) in urgent employment measures such as employment retention support and customized job creation support ▲ 4.1 trillion KRW for COVID-19 vaccine procurement, quarantine response, and medical institution loss compensation ▲ 2.5 trillion KRW (220,000 people) in damage support for small businesses and SMEs ▲ 1.8 trillion KRW (140,000 people) in employment-linked policy finance support ▲ 200 billion KRW (100,000 people) in support for low-income and vulnerable groups.

Among these, the support targets and amounts for the small business Emergency Relief Fund have been significantly expanded, enabling additional support for business owners operating multiple establishments who were previously excluded from damage relief. The government plans to allow up to double the support amount for individuals operating multiple businesses. For example, operating two establishments will receive 150% of the support amount, three establishments 180%, and four or more 200%, enabling business owners operating multiple stores in restricted sectors to receive up to 10 million KRW in Emergency Relief Funds.

However, detailed methods for calculating amounts when each operated establishment falls under different categories such as restricted, limited, or general business sectors have not been concretely determined. Cho Joohyun, Director of the Small Business Policy Office at the Ministry of SMEs and Startups, explained at a briefing on the customized COVID-19 damage relief measures held at the Government Complex Seoul that morning, "The support for multiple establishments was introduced this time to address blind spots in previous Emergency Relief Fund support. The specific payment methods are under review," adding, "It has not been finalized yet, and will be confirmed considering applicants' convenience and feasibility of execution."

Similarly, it is difficult to estimate how much support can be received under the electricity bill reduction plan, which offers up to 1.8 million KRW to alleviate small business owners' burdens. The government plans to reduce electricity bills for 1,151,000 business owners in sectors subject to quarantine measures by 50% for restricted sectors and 30% for limited sectors over three months. The government expects an average support of 288,000 KRW for restricted sectors and 173,000 KRW for limited sectors. However, it has not been decided whether business owners operating multiple establishments can receive support for each establishment. A Ministry of Economy and Finance official stated, "The final details will be confirmed and announced at the time of the business announcement."

The government neither confirmed nor denied the possibility of an increase in the supplementary budget during the National Assembly's review process. Ahn Dogeol, Director of the Budget Office at the Ministry of Economy and Finance, said at the same briefing, "During the process of preparing the government proposal, we closely consulted with the ruling party more than ever and made efforts to reflect the demands from the field conveyed by the party," adding, "There will certainly be additional discussions during the National Assembly's review stage, and we will respond well."

The government currently finds it difficult to specify detailed subcategories such as restricted, limited, or general business sectors. This is because social distancing restrictions differed between the metropolitan area and non-metropolitan areas, and the actual application varied by local governments. A government official explained, "We generally have classifications, but we cannot provide them now," adding, "We will verify the actual implementation details of restrictions by local governments and provide them later during the business announcement process."

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