Support Fund Plus: 146,000 Applications in 3 Hours... 112 Business Crisis Sectors Selected

Application for Business Registration Number 'Odd-Even System'... 3 Payments Per Day for Three Days
112 'Management Crisis Industries' Selected for Maximum Payment of 3 Million Won

Kang Sung-cheon, Vice Minister of the Ministry of SMEs and Startups. Photo by Kang Jin-hyung, Asia Economy aymsdream@

[Asia Economy Reporter Kim Heeyoon] The fourth round of disaster relief funds for small business owners affected by social distancing measures due to the spread of the novel coronavirus infection (COVID-19) began on the 29th. This support is characterized by selecting 112 business types in crisis management sectors with a sales decrease of 20% or more, providing support ranging from 2 million to 3 million KRW.

Kang Seongcheon, Vice Minister of the Ministry of SMEs and Startups, announced at a briefing held at the Government Seoul Office that support for 2.5 million recipients of the first rapid payment of the Buttress Fund Plus started from 6 a.m. that day.

The Buttress Fund Plus is the largest small business disaster relief fund paid so far due to the spread of COVID-19, totaling 6.7 trillion KRW. The second rapid payment, targeting newly opened businesses since December last year, crisis management sectors with sales exceeding 1 billion KRW, and businesses requiring consideration of seasonal factors, will begin on the 19th of next month.

First Payment to Approximately 2.5 Million Businesses in Gathering Ban, Business Restriction, and Crisis Management Sectors

The Ministry of SMEs and Startups stated that to ensure rapid payment, they built the first rapid payment target group using administrative information from the National Tax Service and local governments. Recipients were selected based on sales increase or decrease reflected in last year's reported sales to the National Tax Service. The first rapid payment targets include 133,000 businesses under gathering bans, 572,000 under business restrictions, 134,000 crisis management businesses among general industries, and 1,661,000 with sales decrease types, totaling approximately 2.5 million businesses.

Unlike previous relief payments, businesses that complied with business restriction measures but experienced sales increases were excluded from this support. Also, even if general industry businesses received the New Hope Fund or Buttress Fund, those with increased sales last year are similarly excluded from the support target.

For the first rapid payment recipients, guidance text messages for applying to the Buttress Fund Plus will be sent over two days, the 29th and 30th. At 6 a.m. on the 29th, guidance messages were sent to 1,157,000 rapid payment recipients whose business registration numbers end with an odd digit. As of 9 a.m., messages were sent to 560,000 people, and more than 140,000 applications were received, according to the Ministry of SMEs and Startups.

On the 30th, messages will be sent to 1,158,000 recipients whose business registration numbers end with an even digit. From the 31st, applications can be submitted regardless of odd or even number distinctions.

Additionally, among the first rapid payment recipients, 185,000 operators running multiple businesses can apply for support starting from the 1st of next month when guidance messages are sent.

The Ministry of SMEs and Startups will make payments up to three times a day during the first three days (29th to 31st) to provide support as quickly as possible. Applications submitted by noon will be paid from 2 p.m., those by 6 p.m. from 8 p.m., and those by midnight from 3 a.m. the following day.

112 Crisis Management Sectors Selected in 10 Fields Supporting up to 3 Million KRW

In particular, this Buttress Fund Plus selects crisis management sectors with significant sales decreases among general industries without gathering bans or business restrictions, providing support of 2 to 3 million KRW, which is more than the 1 million KRW support for general industry sales decrease types.

Crisis management sectors are those with a sales decrease rate of 20% or more, and 112 detailed sectors in 10 major fields were selected based on the National Tax Service's VAT filing results.

Travel agencies and movie theater operations with sales decreases of 60% or more receive 3 million KRW, while sectors with a decrease of 40% or more, such as performance venues, exhibition/convention and event agencies, and wedding halls, receive 2.5 million KRW.

Vice Minister Kang Seongcheon said, "The Ministry of SMEs and Startups and related agencies are working to provide support as quickly as possible for those struggling due to COVID-19," adding, "We hope the Buttress Fund Plus will be a small help in difficult times."

Meanwhile, the second rapid payment will begin on the 19th of next month, reflecting businesses eligible for the Buttress Fund Plus but not included in the first rapid payment.

This includes newly opened businesses since December last year, crisis management sectors with sales exceeding 1 billion KRW, and businesses requiring consideration of seasonal factors.

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