Deputy Prime Minister Hong Nam-ki and Minister of Strategy and Finance (third from the left) are announcing damage support measures in response to the spread of Corona 19 at the Government Complex in Seoul on the 29th. From left: First Vice Minister of Health and Welfare Yang Sung-il, Minister of Small and Medium Venture Business Park Young-sun, Deputy Prime Minister Hong, Minister of Employment and Labor Lee Jae-gap, and Chairman of the Financial Services Commission Eun Sung-soo. Reporter Shin Kyung-hoon [email protected]
The government has decided to give 5 trillion won in 3rd disaster support fund to small businesses and freelancers who have been damaged by the novel coronavirus infection (Corona 19). Depending on the type of business, they receive a maximum of 3 million won. Cash payments start on the 11th of next month.
Subsidies change depending on distance
The government decided to pay 410 trillion won in cash, including rent support, to small business owners. It targets 2.8 million businesses that are banned and restricted in the quarantine guidelines and small business owners with annual sales of less than 400 million won, whose sales decreased this year compared to last year.
Businesses that are prohibited from gathering are charged 3 million won. In the case of areas where 2.5 steps of social distancing, such as Seoul, are applied, 5 types of entertainment establishments such as entertainment pub, danran pub, emotion pub, hunting pot tea, and collate, academy, indoor sports facility, singing practice area, direct sales promotion hall, standing performance area, ski resort, sledding area These include 11 industries. In the second-stage area, only five types of entertainment establishments are eligible. Convenience stores that have entered the ski resort are not banned by business category, but they decided to pay 3 million won in consideration of the specificity.
For the group-restricted business that receives 2 million won, in the case of the second stage of distance, restaurants and cafes, indoor sports facilities, singing practice centers, direct sales promotion halls, standing performance halls, etc. This includes cafes, movie theaters, amusement parks, hypermarkets, department stores, and lodging businesses. Other ordinary small business owners only receive 1 million won.
Special employment (special high school) workers and freelancers will receive emergency employment security support. In the 1st and 2nd rounds, 650,000 people who received support receive 500,000 won, and about 50,000 new applicants receive 1 million won. It also gives 500,000 won to visiting and caring service workers such as nursing care workers and corporate taxi drivers.
Payment from the 11th without submitting documents
Those who previously received the new desired fund or emergency employment security support fund plan to apply through a simple application process without submitting additional documents. The small business owner’s support fund uses public data such as the National Tax Service and the Health Insurance Service to identify the recipients as much as possible. The government’s plan is to receive applications from the 11th of next month and complete payments in January of next year. The emergency employment security subsidy will be applied from January 6th only for senior recipients. The goal is to complete payment by the 15th. The corporate taxi, which received the subsidy in the second round, is expected to determine the applicants by the end of January.
In the case of a new application, the support fund will be received after February. The support fund is scheduled to be applied after selecting new targets based on the VAT report data on January 25th. The employment security subsidy is accepted in February. In this case, you must directly prove your income reduction. According to the Ministry of Employment and Labor, if the income in December this year or January next year decreases by more than 25% from the average annual income last year or in a specific month (last December, January, October, and November this year), it will pay 1 million won. Subsidies for caring workers are also expected to be paid after February next year.
Conservation of losses in medical institutions
On this day, the government announced various support measures along with cash aid measures. The payment of electricity and gas bills by small business owners was delayed for 3 months, and payment of various social insurance premiums was delayed for 3 months, or the payment exceptions were expanded. It also raised a subsidy of 100 billion won to help the re-starting of 170,000 small businesses that have closed down.
It also announced a plan to pay 900 billion won in employment maintenance subsidies, which are supported if companies maintain the employment of workers. In order to alleviate the burden of care for parents, it has also proposed a plan to provide indirect labor costs to business owners who perform flexible work, such as working from home. In the first quarter of next year, it was decided to invest 800 billion won in emergency quarantine activities. The budget will be used to expand the public health system and compensate for losses in medical institutions.
Reporter Kang Jin-kyu [email protected]