Seoul’s Financial Aid Package for Small Business Owners and SMEs

□ The Seoul Metropolitan Government (SMG) is pursuing measures to support small business owners and small- and medium-sized enterprises (SMEs), which are facing the unprecedented and prolonged crisis of the coronavirus pandemic, and revitalize the regional economy.

Emergency Business Management Fund Support: Recognizing that what small business owners need most is “financial support,” the SMG has secured additional funds to provide them with low-interest (1% range) loans. The amount of the loan will be determined based on the degree of the damage that the business owners are suffering, such as damage caused as a result of confirmed cases, direct or indirect damages, etc.

Seoul Emergency Small Business Support Program: The SMG is planning to support 10,000 small business owners experiencing financial difficulty because of plummeting sales and fixed costs such as rent, payroll, and utilities. A small business owner running a business in Seoul for at least six months with annual sales in the previous year of less than KRW 200 million (up to credit rating of 7) can get KRW 20 million.

Conversion of High-interest Loans to Low-Interest Loans: The SMG is planning to help small business owners with high-interest loans (rate of 15% or higher) switch to the lower interest loans (2.3%) in order to ease the interest burden. The total amount to be released is KRW 60 billion, targeting those who have taken out loans with interest rates of 15% or higher for more than three months.

Maintenance Cost Waiver for Small Business Owners in Metro Station Shopping Malls: Considering the severe financial difficulties caused by COVID-19, the SMG will waive the rent and a portion of the maintenance costs forsmall business owners of the metro station shopping malls in Seoul until August. Disinfection and sterilization of these underground shopping malls are currently being carried out and will be continue to be conducted once a week at night going forward.

Support for Small Business Owners with Fewer than Five Employees to Retain Employment: Financial aid will be provided to employees who have been put on unpaid leave by small business owners with fewer than five employees. This aid targets the businesses hit hard by COVID-19, including tourism agencies, wholesale and retail businesses, accommodation providers and restaurants, and tech start-ups suffering due to the economic downturn.
-Up to KRW 500,000 per month will be given for up to two months to those on unpaid leave for at least five days (1 employee per business, up to 2 employees for severely hit tourism businesses) → No fewer than 25,000 employees on unpaid leave will benefit from this aid.

Support for Shops Visited by Confirmed Patients: Shops visited by confirmed cases have to be temporarily closed for disinfection to prevent the spread of the virus. The SMG will be providing direct support to 500 shops which sufferdamages incurred due to the shutdown. Among these shops, small businesses and franchisees will receive up to KRW 1.95 million for five days (KRW 390,000 per day: KRW 150,000 for rent and KRW 240,000 for payroll) as damage support funds.

Seoul’s Financial Aid Package for Small Business Owners and SMEs

□ The Seoul Metropolitan Government (SMG) is pursuing measures to support small business owners and small- and medium-sized enterprises (SMEs), which are facing the unprecedented and prolonged crisis of the coronavirus pandemic, and revitalize the regional economy.
-Emergency Business Management Fund Support, Support for Conversion of High-interest Loans to Low-Interest Loans, Maintenance Cost Waiver for Small Business Owners, Support for Small Business Owners with Fewer than Five Employees to Retain Employment, etc.

<Seoul Metropolitan Government’s Support to Relieve the Rent Burden on Virus-hit Shopping Centers >

 
<Seoul Metropolitan Government’s Support to Relieve the Rent Burden on Virus-hit Shopping Centers >

No comments
Write CommentLIST
WRITE COMMENT

위로이동