Small Business Owners "Regret Over 4th Phase Extension... Should Be an Opportunity to Lift Business Restrictions"

Extension of Level 4 Social Distancing in the Seoul Metropolitan Area... Restaurant and Cafe Operations Limited to 10 PM
Sogongyeon "Deep Disappointment Ahead of the Busy Chuseok... Effectiveness Likely Limited"
"Urgent Call to Lift Business Restrictions for All Sectors... Demand for Concrete Support Measures"

Amid the prolonged COVID-19 crisis, the debt of self-employed individuals increased by nearly 10 trillion won in the second quarter (April to June) of this year alone. According to the "2021 Q2 Depository Institutions' Industry Loans" data released by the Bank of Korea on the 1st, the outstanding loans from deposit banks to non-corporate enterprises (self-employed) reached 418.5 trillion won at the end of the second quarter, an increase of 9.4 trillion won compared to the previous quarter. The photo shows the lifeless scene of Myeongdong on the same day. Photo by Moon Honam munonam@

[Asia Economy Reporter Junhyung Lee] As the government extended the social distancing Level 4 measures applied to the Seoul metropolitan area until the 3rd of next month, the Korea Federation of Micro Enterprise Associations (KFMEA) expressed regret and urged the removal of business restrictions.

In a statement on the 3rd, KFMEA said, "The partial easing of operating hours and capacity limits can be positively evaluated," but added, "However, with the extension of social distancing for another month ahead of the peak Chuseok holiday season, small business owners are once again deeply disappointed." They continued, "Some easing measures may provide some relief to sectors such as restaurants and cafes," but pointed out, "Since vaccination among the main customer base under 50 is still in its early stages, the effectiveness is inevitably limited."

KFMEA stated, "Despite the highest level of quarantine measures, the spread of COVID-19 has not been curbed," and "Small business owners have been forced to make unilateral sacrifices and have become the biggest victims of the COVID-19 crisis." They added, "We hope this measure will serve as an opportunity to fundamentally shift quarantine policies towards a 'With Corona' approach, guaranteeing full business freedom to small business owners," emphasizing, "We strongly insist that business restrictions be lifted for all small business sectors as soon as possible."

They also stressed the need for concrete support measures for the damages suffered by small business owners. KFMEA said, "The government must fully compensate for the damages to small business owners after July of this year through the enactment of the Loss Compensation Act," and "KFMEA’s participation in the Loss Compensation Committee should be guaranteed to establish compensation standards and scope that small business owners can accept."

Furthermore, they argued for expanding the eligibility for policy fund payments and alleviating the rental burden on small business owners. KFMEA stated, "Regarding policy funds, the scope limited to recipients of the 4th disaster relief fund should be greatly expanded to include workers in general industries," and "We strongly urge the establishment of effective measures to ease the rental burden on small business owners, such as extending the tax credit period for benevolent landlords."

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