COVID-19 RELIEF FUNDS

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The government has begun providing COVID-19 relief funds to small businesses, freelancers and contract workers. The fund includes employment security subsidies of 500,000 won per person, and up to 3 million won in funding for small business owners.

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January 11, is the starting date for the government to provide the third COVID-19 disaster relief fund to small businesses that sustained losses due to the pandemic. Small businesses that are subject to the gathering ban issued last November will receive 3 million won in new subsidies. Those subject to gathering restrictions can receive 2 million won. Entrepreneurs who are not subject to the gathering ban or gathering restrictions but experienced on-year sales decline with sales under 400 million won are eligible for a 1 million won subsidy. The measure applies only to small businesses that opened before November 30, 2020. Gambling parlors, real estate agencies and select professions are excluded. The new benefits will be paid out by January 12 at the latest to some 2.5 million small business owners who received the second disaster relief fund that apply for the third fund immediately upon receiving text messages from the government. Those who did not receive the second disaster relief fund but whose sales decreased last year can receive subsidies in mid-March by reporting their income before the National Tax Service's deadline for filing VAT. Freelancers and contract workers can receive employment security funds of 500,000 won per person starting January 11. The money will be wired to their bank accounts used for previous disaster relief funds. Those who did not receive the first two subsidies will be notified separately on January 15. However, only one kind of funding -- either employment security or small business subsidy -- is to be paid out to each individual. The government is urging the public to watch out for financial fraud. Individuals are not required to provide their bank account passwords or OTP numbers to receive state funds.