Second Round of Hope Recovery Fund Payments Begin: 1 Trillion Won to 611,000 Businesses

Recovery Support Fund Rapid Payment Targets and Support Status. [Table=Ministry of SMEs and Startups]

[Asia Economy, reporter Kim Jonghwa] The second round of applications and payments for the Hope Recovery Fund (the 5th round of disaster relief funds) for small business owners began on August 30, 2021.

According to the Ministry of SMEs and Startups, the second round of rapid payments for the Hope Recovery Fund, which started this morning, will provide a total of 1 trillion won to 611,000 businesses. This includes 409,000 newly eligible small businesses and self-employed individuals added due to expanded sales decline criteria, 77,000 businesses newly established between March and June 30, 2021, and 117,000 others.

To ensure rapid support, payments will be made four times a day according to the application time slot for five days until September 3. The additional recipients in this second round of rapid payments include 29,000 businesses subject to closure orders, 182,000 businesses subject to business restrictions, and 400,000 businesses in industries facing management crises. Among these, the largest group is the 409,000 businesses newly added due to the expanded criteria for determining sales decline.

In particular, 183,000 simplified taxpayers and tax-exempt businesses who were previously ineligible for support under the “Buttress Fund Plus” due to the absence of semi-annual reported sales can now receive support through a comparison of sales decline using data from the National Tax Service’s tax infrastructure.

Among businesses established between March and the end of June 2021, 77,000 that meet the support criteria will also receive assistance. Additionally, 149,000 single-owner businesses (including 64,000 overlapping cases of sales decline and new establishments) are included in the second round of rapid payments. Each individual can receive support for up to four businesses, with the highest-value business receiving 100% of the support amount, the second 50%, the third 30%, and the fourth 20%.

Furthermore, 30,000 small businesses with annual sales exceeding 1 billion won, operating in 165 industries newly added to the “management crisis” category-where the average industry sales decline rate from 2019 to 2020 was between 10% and less than 20%-are also included in the second round of rapid payments.

On the morning of the 30th, Kang Sungcheon, Vice Minister of the Ministry of SMEs and Startups, is giving a briefing on the commencement of the second rapid payment of the Hope Recovery Fund at the Seoul Government Complex briefing room.
[Photo by Ministry of SMEs and Startups]

409,000 additional businesses due to expanded sales decline criteria, 10,000 more due to extended quarantine measures

With the extension of the period for quarantine measures, an additional 10,000 businesses will receive support. The eligible period for quarantine measures under the Hope Recovery Fund has been significantly expanded to August 16, 2020-July 6, 2021, compared to the Buttress Fund Plus (November 24, 2020-February 14, 2021). As a result, some businesses that were not eligible under the Buttress Fund Plus are now included in the Hope Recovery Fund support list.

Additionally, 2,500 businesses that implemented closure or business restrictions but were not included in the first round of rapid payments due to delays in local government procedures will now receive support. Moreover, for 28,000 businesses that received support in the first round but require an increased payment, the difference will be paid automatically from September 6 without a separate application.

For business owners newly added to the list of eligible recipients in this second round of rapid payments, notification text messages will be sent from 8 a.m. on the same day. After receiving the notification, they can apply through the dedicated Hope Recovery Fund website (희망회복자금.kr).

A total of 1,945,000 businesses to receive 4 trillion won through rounds 1 and 2

For small businesses and self-employed individuals who are not included in the Hope Recovery Fund or rapid payment lists, a verification payment process will begin on September 30. Businesses with joint representatives (with a power of attorney), social enterprises and cooperatives (with a social enterprise certificate or cooperative establishment confirmation, etc.), those that have received quarantine measure implementation certificates from local governments, and those wishing to re-verify their industry classification may apply for verification payment.

Detailed information on the eligibility, requirements, necessary documents, application period, and methods for verification payment will be provided separately in September.

Meanwhile, from August 17 to 27, the Ministry of SMEs and Startups smoothly distributed 2.9 trillion won in Hope Recovery Funds to 1,244,000 small business owners and small businesses. With 1,334,000 businesses in the first round of rapid payments and an additional 611,000 in the second round, the total number of recipients has now reached 1,945,000 businesses.

Kang Sungcheon, Vice Minister of the Ministry of SMEs and Startups, stated, "The initially expected number of recipients was 1.78 million, but by broadly applying the support criteria such as sales decline, more businesses have become eligible for support. We will do our utmost to swiftly distribute the Hope Recovery Fund, implement emergency loans, and thoroughly prepare for loss compensation to support small business owners facing difficulties."

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