On the 6th, the Ministry of SMEs and Startups announced that it would expand the usage of the 'burden relief credit' provided to small business owners to include communication costs and vehicle fuel expenses.
The burden relief credit is a program that supports a maximum credit of 500,000 won for targeted small businesses with annual sales of 300 million won or less last year or this year, to be used for utility bills such as electricity, gas, and water, as well as payment of four major insurance premiums.
Although the program officially started on 14th last month, small businesses in collective buildings, such as shopping centers, could not utilize the credit because they paid utility bills collectively under the name of management fees. The Ministry of SMEs and Startups has expanded the usage to include communication costs and vehicle fuel expenses for small businesses in collective buildings and for those who have difficulty using the credit.
Director General Hwang Young-ho said, "There were criticisms that it was difficult to use the credit because it could only be spent on utility bills," and added, "I believe this measure will enable small business owners in the blind spots to use the credit more widely."
The Ministry of SMEs and Startups is also considering an additional method of verifying utility bills included in management fee invoices to provide credits.
As of now, among the 3.11 million small business owners eligible for support, credits have been provided to 2.15 million people. The Ministry of SMEs and Startups secured a budget of 1.566 trillion won for the credit support program through the supplementary budget.
Credits can be applied for until November 28. However, applications may close early if the budget is exhausted. Credits can be used without separate documentation until the end of this year.
Director General Hwang noted, "I have heard that many small business owners are still unaware of the program and have not been able to apply," and added, "We will promote the program to raise awareness, listen to voices from the field, and continuously improve the policy.