Up to 20 Million KRW in Hope Recovery Fund Support for Small Businesses and Micro-Enterprises

First Round of Expedited Payments Begins on August 17
Total Support Amount Reaches 4.2 Trillion KRW

Types of Hope Recovery Fund Support and Support Amounts.
[Table=Ministry of SMEs and Startups].

[Asia Economy, reporter Kim Jonghwa] Small businesses, including micro-enterprises, that were subject to business suspension or operational restrictions due to COVID-19 prevention measures, or that fall under industries in management crisis, will receive up to 20 million KRW in Hope Recovery Fund support. The total amount is 4.2 trillion KRW, covering 1.78 million small businesses and micro-enterprises.

Support will be differentiated based on whether a business was subject to a business suspension order for six weeks or more, or for less than six weeks, during the period from August 16, 2020, to July 6, 2021. Businesses that experienced a decline in sales due to operational restrictions will also receive support, with the amount varying depending on the duration of the restrictions.

On August 12, the Ministry of SMEs and Startups announced detailed criteria for the Hope Recovery Fund and stated that payments will begin on August 17.

The Hope Recovery Fund is designed with a focus on providing support that is "broad, substantial, and prompt" to improve the business conditions of small enterprises facing difficulties.

Among businesses that complied with business suspension orders between August 16, 2020, and July 6, 2021, those subject to suspension for six weeks or more will receive 4 million to 20 million KRW as part of the Business Suspension (Long-term) category. Those suspended for less than six weeks will receive 3 million to 14 million KRW under the Business Suspension (Short-term) category.

For businesses that experienced a decline in sales due to operational restrictions during the same period, those restricted for 13 weeks or more will receive 2.5 million to 9 million KRW under the Operational Restriction (Long-term) category, while those restricted for less than 13 weeks will receive 2 million to 4 million KRW under the Operational Restriction (Short-term) category.

A decrease in sales is recognized if there is a decline in any half-year period compared to previous periods since 2019. For simplified taxpayers and others without reported half-year sales, the National Tax Service's tax infrastructure data will be used to compare sales by half-year.

Small businesses in industries classified as being in management crisis that have experienced a decline in sales are also eligible for the Hope Recovery Fund. While the previous Support Plus Fund designated industries with a sales decrease of 20% or more year-on-year as management crisis industries, the Hope Recovery Fund has expanded this to include industries with a 10% to 20% decrease. As a result, the number of management crisis industries has increased from 112 under the Support Plus Fund to 277, an addition of 165 industries.

Industries newly added to the management crisis category include eyewear and lens retail, taxi transportation, household laundry services, portrait and event video photography, and wedding consulting and preparation services, among others. Businesses in management crisis industries that have experienced a decline in sales will receive between 400,000 and 4 million KRW, depending on the industry-specific sales decline rate and the size of the business's sales.

The first round of expedited payments for the Hope Recovery Fund will begin on August 17. This round targets businesses that received the Support Plus Fund and also meet the eligibility criteria for the Hope Recovery Fund. Notification text messages will be sent to the representatives of eligible businesses starting at 8:00 a.m. on August 17.

Applications for support can be submitted online at '희망회복자금.kr' starting from 8:00 a.m. on August 17. Applicants must prepare a mobile phone registered in their name or a joint authentication certificate (corporations must use a corporate certificate) for identity verification. On August 17 and 18, applications will be accepted based on the last digit of the business registration number (odd/even system). From August 19, all eligible businesses can apply regardless of the last digit.

Businesses that were not eligible for the Support Plus Fund but have become eligible for the Hope Recovery Fund due to the expanded sales decline criteria, those that opened after March this year, and cases where one person operates multiple eligible businesses, can apply during the second round of expedited payments scheduled for August 30.

The Hope Recovery Fund call center (☎1899-8300) and online chat counseling (희망회복자금114.kr) will be available starting at 9:00 a.m. on August 17 for applicants' convenience. Detailed information on support criteria, management crisis industries, application procedures, and other aspects of the Hope Recovery Fund can be found in the announcement on the Ministry of SMEs and Startups website.

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