Small business loss compensation, 1 million to 5 million won is 33%… 100 million won is 0.1%

Loss compensation website (Small Business Loss Compensation.kr) main screen 〈Photo=Ministry of SMEs and Startups〉

In the third quarter of this year, compensation for losses due to the Corona 19 virus quarantine measures will be paid from tomorrow. For 800,000 small businesses and small business owners, the total amount of payment is 2.4 trillion won.
The Ministry of SMEs and Startups held the 2nd Loss Compensation Deliberation Committee on the 26th and decided on a loss compensation payment plan for the third quarter of this year.

■2.4 trillion won to 800,000 small businesses and small business owners… 74% of restaurants and cafes
Losses compensation is subject to 800,000 small businesses and small business owners who have suffered serious business losses due to the implementation of the ban on gatherings and restrictions on business hours from July 7 to September 30.
Considering that the total amount of payment is 2.4 trillion won, it means that an average of 3 million won is paid per place.
The number of ‘quick compensation’, which will start on the 27th, is 620,000, 77% of the total payment, or 1.8 trillion won in payment, which is 73%.
When looking at the subject of expedited compensation by industry, 450,000 restaurants and cafes accounted for 73.6%. It was followed by hairdressing and beauty businesses (8.5%), private academies (5.2%), and entertainment facilities (4.5%).
The average amount of compensation by industry is the largest at 6.34 million won for entertainment facilities. This is due to a significant decrease in sales due to the implementation of a long-term ban on gatherings.

33% of businesses that receive 1 million to 5 million won, 0.1% of businesses that receive the upper limit of 100 million won
What about the amount of compensation?
There were 203,000 businesses receiving compensation between 1 million and 5 million won, accounting for 33.0% of the total. The number of cases exceeding 5 million won is 93,000 (15.0%).
The number of businesses receiving the upper limit of 100 million won was only 0.1% of 330 businesses. Most of these establishments are entertainment facilities, the Ministry of SMEs and Startups explained. There are 90,000 businesses (14.6%) that receive the lower limit of 100,000 won. They will receive an average of 62,000 won more than the actual calculated compensation.
Of the 90,000 companies receiving the lower limit, 69,000, or 76.8%, are subject to simplified taxation with annual sales of less than 80 million won. There are 23,000 hairdressing/beauty businesses and bathhouses with relatively low compensation for losses due to the short implementation period of quarantine measures.

■Online application starting tomorrow at 8 am… Operation of ‘Odd Even System’ for the first four days
Loss compensation application and payment are processed in three stages: expedited compensation, confirmed compensation, and objection. You can apply for expedited compensation, which starts on the 27th, on the Small Business Loss Compensation website (Small Business Loss Compensation.kr) without any separate documents.
For the first three days (October 27-29), you will be paid 4 times a day. If you apply before 4pm, you can receive it on the same day.
For 620,000 people who are eligible for expedited compensation, a text message will be sent from 8 am on the 27th and 28th for two days. On the 27th, 310,000 people with an odd ending digit of the business registration number are eligible, and on the 28th, 310,000 people with an even number.

If you do not receive a text message, you can check whether you are eligible for the loss compensation website, which will open at 8 am on the 27th. You can also check through the call center (☎1533-3300) and online chat consultation (loss compensation 114.kr).

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If you do not receive a text message, you can check whether you are eligible for the loss compensation website, which will open at 8 am on the 27th. You can also check through the call center (☎1533-3300) and online chat consultation (loss compensation 114.kr).

Source: https://www.newsdirectory3.com/small-business-loss-compensation-1-million-to-5-million-won-is-33-100-million-won-is-0-1/

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