RELIEF FUND FOR SMALL BUSINESSES

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The government has decided to provide more than three million small business owners relief funds of one million won each as it plans to tighten the reins on social distancing protocols from Saturday amid a spike in COVID-19 cases. Businesses which saw their sales decrease can receive the relief funds regardless of the size of their businesses

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As distancing curbs are set to be tightened from Saturday, the government has laid out fresh plans to provide support for the self-employed and small business owners.

[Soundbite] Hong Nam-ki(Deputy Prime Minister for Economic Affairs) : "The government will mobilize all possible resources including budgets, state funds and emergency funds to newly draft3 support packages worth KRW 4.3 tn for swift provision from later this month."

Relief funds of one million won will be given to 3.2 million business owners who suffered a decline in sales. It will be paid in cash if a sales decrease is confirmed regardless of the amount of sales or level of quarantine measures affecting the business. Recipients include 900-thousand businesses that were eligible for the existing compensation scheme and 2.3 million other establishments that were excluded such as those in travel and performance sectors. The current compensation scheme will also be expanded to include 120-thousand new businesses which previously were not to benefit from the payout. This includes beauty salons, kids cafes and other venues that are subject to restrictions such as a top cap on customer numbers. Small business owners who meet the conditions can receive both the existing compensation payout and the new relief aid dubbed the quarantine support fund. The government will also support businesses where the vaccine pass rule is applied. It will provide 100-thousand won to roughly 1.15 million businesses that are subject to the COVID-19 vaccine pass system, including restaurants, coffee shops, Internet cafés and study rooms.

[Soundbite] Hong Nam-ki(Deputy Prime Minister for Economic Affairs) : "Support will be provided once it’s confirmed that businesses purchased items to enforce quarantine measures such ase entry log devices, temperature sensors and partitions."

The latest measures will be implemented from later this month while businesses whose sales have gone down but are not affected by curfews will receive support from next month.