[Lost 2 Years] "Small Business Support Funds Are Insufficient"... Tears of Self-Employed Workers

Government Support Policies for Self-Employed Flip-Flop
"Doesn't Seem Like They'll Change Next Year Either"
Urgent Need for Realistic Policies Without Blind Spots

On the 26th, Jeolmeum Street in Jongno-gu, Seoul is quiet due to the severe cold and the impact of COVID-19. Photo by Moon Honam munonam@

[Asia Economy Reporters Byungdon Yoo and Seungyoon Song] Kim Gyubeom (34), who runs an interior design company in Gyeonggi-do, feels nothing but frustration toward COVID-19. From March last year, when the COVID-19 pandemic was at its peak, he had no income for three months. Of course, the government provided support funds for small business owners. However, the support of about 1 million won was insufficient to cover the losses. Ultimately, Kim had no choice but to lay off the employees he worked with and switch to a one-person business. He could not hold onto them any longer when he was unable to pay their salaries properly.

Although sales have somewhat recovered as the COVID-19 pandemic prolonged, there is still a long way to go to return to the previous state. Kim said, "I thought it would not be greatly related to COVID-19, but the interior design industry was severely affected by its aftermath," adding, "In fact, because of such factors, there were many cases where we suffered losses in government support and other areas." He continued, "The government's small business support policies have been inconsistent, and sometimes I feel they are narrow-minded," appealing, "I hope policies that consider blind spots and fit the reality will be introduced."

Choi Seungwoo (38), who operates a food waste disposal business traveling between Seoul, Gyeonggi, and Incheon, also feels disappointed with the government's support policies. Last year, he applied for small business loss compensation but was notified that he was not eligible. It was not due to financial comparisons such as sales. Since most of his work involves receiving products and installing them at customers' homes without a separate store, he was informed that he could not receive support. Eventually, Choi reluctantly set up an office recently. He also pointed out, "Although it is impossible to satisfy everyone, I think the criteria for determining support eligibility are unclear," and criticized, "At least, there should be no cases where people are unfairly denied support."

On the 22nd, self-employed participants at the "Self-Employed General Rally" held at Gwanghwamun Citizen Open Square in Jongno-gu, Seoul, urged the suspension of business restrictions and the quarantine pass measures, as well as compensation for losses. Photo by Kang Jin-hyung aymsdream@

Since the COVID-19 outbreak, the government has repeatedly raised, lowered, and extended social distancing levels dozens of times depending on whether the spread continued. Initially, social distancing adjustments were made by local governments focusing on areas with severe outbreaks, but as COVID-19 spread nationwide, the social distancing system was reorganized midway. Amid repeated extensions, there was hope to regain daily life through the implementation of 'gradual recovery of daily life (With COVID-19).' However, as confirmed cases surged, the situation returned to square one.

In this situation, the most direct and significant damage was suffered by self-employed individuals. Most self-employed people Asia Economy met said, "The situation does not seem likely to change much next year." Jo Jihyun, co-representative of the National Self-Employed COVID-19 Response Committee, said, "Self-employed people want to overcome COVID-19 and return to daily life more than anyone else, and that is why they endured sacrifices at the forefront," adding, "There should be government-level measures and cooperation for these sacrifices, but the most frustrating part is that fundamental rights are being trampled." He added, "Next year will also be difficult, but I want to hope there is still capacity, and I hope for a future where the sacrifices of self-employed people return as pride." The committee plans to continue collective actions nationwide next year depending on whether social distancing is extended again.

On the 22nd, self-employed participants at the "Self-Employed General Rally" held at Gwanghwamun Citizen Open Square in Jongno-gu, Seoul, urged the suspension of business restrictions and the quarantine pass measures, as well as compensation for losses. Photo by Jinhyung Kang aymsdream@

Oh Hoseok, president of the Korea Federation of COVID-19 Affected Self-Employed, said, "Next year is expected to be more difficult for self-employed people's livelihoods than this year," emphasizing, "Supporting small business owners and self-employed people directly is of course important, but now is the time for government efforts to revive dead commercial districts in line with the lifestyle changes caused by COVID-19."

Choi Wonbong, secretary-general of the Korea Central Association of Entertainment Food Service, also said, "Almost no one believes the situation will improve next year while COVID-19 continues to spread like this," adding, "Since the disease called COVID-19 seems unlikely to disappear, along with discussing how to coexist, there should now be a swift government decision for self-employed people."

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