[Chuseok Livelihood Measures] 43 Trillion Won Released to Relieve Financial Difficulties of Small Businesses and SMEs

The government has decided to supply up to 43 trillion won to alleviate financial difficulties faced by small business owners and small and medium-sized enterprises (SMEs) during the Chuseok holiday. The loan amount totals 39.1 trillion won, including 210 billion won from the Bank of Korea, 6 trillion won from policy banks, 800 billion won from the Small and Medium Business Corporation, and 32 trillion won from commercial banks. The guarantee amount is 3.95 trillion won.

On the 28th, the government held an Economic Ministers' Meeting chaired by Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok, where it announced the "Chuseok Livelihood Stabilization Measures" containing these details.

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Trade receivables worth approximately 2.7 trillion won will be insured to reduce the risk burden of credit sales for SMEs, and traditional market merchants will receive support totaling 5 billion won for purchasing seasonal goods. The maximum support is 200 million won per merchant association and up to 10 million won per individual store.

The eligibility for electricity bill support of up to 200,000 won for small business owners will be expanded from annual sales of 60 million won or less to less than 104 million won. Early payment of value-added tax and customs refunds will be provided to export SMEs, micro-businesses, and businesses located in special disaster areas.

The Saechulbal Fund, a debt adjustment support program for small business owners, will expand its target and extend the application deadline before Chuseok. Qualitative improvements such as strengthening education-linked support and expanding partner institutions will be pursued simultaneously. One trillion won will be supplied within the year as conversion guarantees to extend the loan repayment period by up to five years for small business owners using loans with guarantees from regional credit guarantee foundations.

The government will increase the supply scale of the "Hetsalron Youth," a small financial support project for youth and university students, from 200 billion won to 300 billion won, an increase of 100 billion won.

Users who have fully repaid small living expense loans and require urgent funds again will be able to receive a re-loan of up to 1 million won, with early disbursement before Chuseok. The basic interest rate for small living expense loans is 15.9%, which can be reduced to as low as 9.4% depending on completion of financial education and faithful repayment.

Earned income and child tax credits for low-income households will be promptly paid on the 29th, one month earlier than the legal deadline, and support will be provided for relocation to public rental housing for housing-vulnerable groups living in small rooms and goshiwon (cheap dormitories).

To allow families separated by distance to communicate without worrying about data usage, free video calls will be supported during the Chuseok holiday period. The three weeks before and after Chuseok will be designated as a special parcel management period to encourage government offices to place orders in advance and distribute shipment volumes.

Fuel subsidies linked to gasoline, diesel, and natural gas prices will be extended for two months until October. The government previously extended the fuel tax reduction measures of 20% for gasoline and 30% for diesel and liquefied petroleum gas (LPG) until October.

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