DETAILED PLANS ON 5TH RELIEF FUND

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The government announced today a detailed plan for the fifth disaster relief fund for small businesses struggling through the pandemic. More financial aid will be available for more businessmen, especially the simplified taxpayers who weren’t eligible for the fourth round of financial support.

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​It has been hard for simplified taxpayers or tax-exempt entrepreneurs who report their sales only once a year to prove the amount of their semi-annual sales. They weren’t eligible for the fourth round of disaster relief fund simply because they couldn’t prove that their six-month sales had decreased.

[Soundbite] (OOO(Simplified taxpayer(Restaurant owner))) : "The payment of the 4th relief fund had been delayed for so long. I had been sufficiently angry at one point but now I just feel depleted."

But with the upcoming, new relief fund named the Hope Restoration Fund will be available for even such businesses. The government will examine the National Tax Service data such as credit card sales and cash receipts to compare their half-year sales. Once it has been confirmed that their sales had in fact fallen, the government will pay them subsidy. Then no one will be left out.

[Soundbite] Jo Ju-hyeon(Head, Office of SME Policy, Ministry of SMEs and Startups) : "I expect the aid to be paid out starting on August 30 since we need to do some extra work with taxation authorities."

The eligibility criteria for the support fund have been substantially expanded for this round. Restaurants, coffee shops and other businesses forced to restrict their operations will also be eligible. The businesses that saw their sales shrink in 2020 compared to 2019... as well as those with reduced sales in the latter half of the same year stand to receive aid. Satisfying just one of eight conditions, such as a drop in sales in the first half of this year compared to the latter of last year, qualifies a business for the relief fund. The aid amount has been increased as well. Bars, singing practice rooms and other businesses imposed with a gathering restriction order stand to receive up to 20 million won if they didn’t open for more than six weeks. Businesses that faced an operation restriction order may receive as much as nine million won if they had closed for more than 13 weeks.

[Soundbite] (OOO(Small business owner(Cafe owner))) : "It’s nice that I can receive aid, but that’s not enough. I’ve already let go of all my employees."

Business owners can start applying for the Hope Restoration Fund on August 17th through the official website. Meanwhile, small businesses that failed to receive the fourth round of disaster relief are begging for belated help even now.