Small Business Loss Compensation Fund, Confirmation Payment Applications Accepted Starting Today

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[Asia Economy Reporter Donghyun Choi] The Ministry of SMEs and Startups announced on the 13th that from 9 a.m., it will begin accepting applications for the 'Small Business Loss Compensation Fund' confirmation payment.

Since the 30th of last month, the Ministry has been conducting rapid payments of the Small Business Loss Compensation Fund without requiring separate document submissions for 3.48 million businesses pre-selected through administrative information held by the government.

The confirmation payment starting today is a procedure where small business owners submit supporting documents online, and after verifying eligibility, the compensation fund is paid. The confirmation payment application targets are broadly divided into four types.

First, cases where eligibility for the compensation fund has been confirmed through administrative information, but simple supporting documents are required for payment. If multiple people jointly operate a supported business, the amount will be paid to one person authorized by the co-representatives to receive the compensation fund. Among non-profit organizations, social enterprises, cooperatives, and consumer cooperatives will receive the compensation fund upon submitting certification or establishment approval documents according to relevant laws.

Applications are also accepted from those confirmed eligible through administrative information but unable to apply via the rapid payment method. This includes cases where identity verification via personal mobile phone, joint certificate, or simple authentication is not possible, minors, or those whose name and resident registration number have changed. If a proxy must receive the payment due to hospitalization, death, or overseas stay, or if the payment is to be received in an account under another person's name, a power of attorney must be submitted.

Those who have already received the compensation fund through rapid payment but wish to change the support type (payment amount) are also eligible. To request changes in sales scale or sales decrease rate, a value-added tax standard certificate or value-added tax exempt income certificate must be prepared. To verify whether the business qualifies for the increased support category of 'average sales decrease rate of 40% or more,' a value-added tax final return or business status report must be submitted.

Applications are also accepted from businesses not found eligible through the initial inquiry but who believe they meet the support criteria. Businesses that believe they meet the sales decrease and other compensation fund requirements must submit a value-added tax standard certificate and value-added tax final return. The National Tax Service will then review eligibility based on sales decrease and other factors.

Among businesses that received the 1st and 2nd quarantine support funds, those whose sales increased but complied with quarantine measures such as operating hour restrictions after August 16, 2020, can receive the basic amount (6 million KRW) by submitting a confirmation of administrative order compliance. Businesses excluded from support due to no VAT-reported sales or taxable infrastructure sales in 2020 and 2021 can receive the compensation fund by submitting proof such as health insurance premium payments for regular employees or purchase tax evidence.

Confirmation payment applications will be accepted for about seven weeks from today until July 29. The principle is that the business owner directly accesses the Small Business Loss Compensation Fund website (소상공인손실보전금.kr) to submit supporting documents online. However, if identity verification is impossible and online application is difficult, exceptions allow for prior reservation and in-person application at a Small Enterprise and Market Service regional center.

The reservation-based in-person application period runs from August 8 to 29, and reservations can be made through the Small Business Loss Compensation Fund website or call center. Detailed information on confirmation payment eligibility, required documents, and application methods can be found in the Ministry of SMEs and Startups' announcement on the implementation of the Small Business Loss Compensation Fund confirmation payment.

If applicants receive a 'non-payment notice' during confirmation payment or disagree with the amount received, they may file an objection, with separate guidance on objections planned for August.

A Ministry of SMEs and Startups official explained, "Since the Small Enterprise and Market Service must verify attached documents for each application during confirmation payment, it may take longer than rapid payment," adding, "Payments to eligible recipients will be made twice daily."

Meanwhile, the Small Business Loss Compensation Fund began payments on the 30th of last month, and as of yesterday, approximately 20.5 trillion KRW has been paid to a total of 3.37 million businesses.

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