Relief package for self-employed in South Korea

The Financial Services Commission (FSC) recently announced that it has earmarked this amount in special funds to support the recovery of small business owners and self-employed.

This is part of an 80 trillion won (US$61.0 billion) financial support programme announced previously by the government to stabilise the livelihoods of the people. 

Of the 41-trillion won (US$31.3 billion) aid package, 10.5 trillion won (US$8 billion) will be spent to provide liquidity to small business owners and self-employed that are capable to repay debts but are currently grappling with operational challenges, while 29.7 trillion won (US$22.6 billion) will be used to enhance their competitiveness and 1 trillion won (US$762,429) to help them regain feet. 

The aid package will be provided via policy lenders including Industrial Bank of Korea and Korea Credit Guarantee Fund to help small businesses on the verge of going under from inability to meet debt obligation through rollouts at cheaper rates.

Of the 10.5 trillion won (US$8 billion) worth of new funds provided to small merchants and self-employed, 3.25 trillion won (US$2.5 billion) will be offered to those directly hit by COVID-19 through a special guarantee by the Credit Guarantee Foundation.

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A maximum of 300 million won (US$228,729) will be offered as operation funds to each business. A total 2.1 trillion won (US$1.6 billion) will also be provided to those suffering from worsening financial conditions. 

Most of the support including special guarantees will be offered immediately starting this week while some of the loan programmes from August 8, according to Pulse.