South Korea to inject W4.3tr to support struggling small business owners

Finance Minister Hong Nam-ki (Yonhap)

South Korea will inject 4.3 trillion won ($3.6 billion) in subsidies to support owners of small businesses and self-employed people struggling from social distancing rules necessitated by the pandemic, top officials said Friday.

The support measures come a day after the government decided to reimpose restrictions due to a surge in infections.

Finance Minister Hong Nam-ki said at a joint government briefing on the day, “If a sales decline is confirmed, the government will pay 1 million won in cash regardless of the size of sales or the level of quarantine measures.”

For the program, 3.2 trillion won of subsidies will be set aside for 3.2 million small-business owners.

“The government will also provide in-kind support worth up to 100,000 won to reduce the burden of quarantine supplies due to the expansion of quarantine passes,” Hong said.

If owners prove they have purchased terminals and thermometers to confirm vaccination status, they will be paid up to 100,000 won. Target places are 1.15 million restaurants, cafes and PC rooms. To this end, 100 billion won will be set aside.

For the support, 120,000 new businesses, such as hair and beauty businesses and kids cafes, which were not subject to compensation for losses, will be newly included in the loss compensation program. 




By Shin Ji-hye (shinjh@heraldcorp.com)