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On the 17th, used kitchen items were piled up on Kitchen Street in Hwanghak-dong, Jung-gu, Seoul. Recently, applications for support for store demolition costs and job change incentive allowances have been increasing at the Small Business Market Promotion Corporation. This is because self-employed people are finding it difficult to run stores due to various negative factors such as rising prices, labor costs, and utility fee increases. News 1
From January to April of this year, applications for government-supported subsidies increased rapidly when small business owners closed their businesses, but it was found that 8 out of 10 applicants have not yet received support for store demolition costs. In particular, in April, about 2,800 applications were received, but no support was received. It is pointed out that the conversion of the expenditure system and the lack of review personnel are holding it back.
According to data received by the office of Democratic Party lawmaker Kim Hoe-jae, a member of the National Assembly’s Industry, Trade, Energy, Small and Medium Venture Business Committee, from the Small Business Market Promotion Corporation (Sovacuum) on the 26th, the number of applications for store demolition support projects from January to April of this year was 12,804. It increased by 47% compared to the same period last year (8,691 cases) and by 74% compared to 2021.
Graphics = Younghee Kim 02@joongang.co.kr
However, the actual number of applications was only 21% of the total. In particular, the payment rate from February to April was only 0.05%. This compares to 67% paid in January to April last year and 76% paid in the same period in 2021.
Graphics = Younghee Kim 02@joongang.co.kr
As of April this year, 2,454 applications had been received for the job change incentive allowance, which supports employment at small business owners after business closures, but only 38% of applications were applied. In April alone, 738 cases were submitted, but none of them were supported.
In relation to this, Sojin Gong said, “(On the 28th of last month), some work delays occurred during the process of switching to the new expenditure system and becoming familiar with the work.” It was also mentioned that the budget for job change incentives was only prepared in mid-February.
It is also pointed out that there are only two full-time employees. A small business official responded, “The store demolition support project takes an average of 2.5 months from application to payment,” and added, “We are giving priority to expenses directly supported to small business owners.”
Business closures are on the rise. According to the Korea Federation of Small and Medium Businesses, the amount of business closure deductions paid by Yellow Umbrella Mutual Aid last year was KRW 968.2 billion, the highest ever.
Reporter Baek Ilhyun baek.ilhyun@joongang.co.kr
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