Gov't seeks additional small biz relief grants

In this Dec. 7, 2020, file photo, an outdoor shopping street remains vacant amid fears of the coronavirus in Seoul. AP

South Korea is seeking to include relief grants of up to 3 million won (US$2,700) for small business owners in a new COVID-19 economic relief program expected to be announced this week, according to officials Sunday.

The country's third round of emergency relief package, expected to reach nearly 5 trillion won, will likely be announced later in the week, after being approved in a senior ruling party-government meeting and the regular weekly Cabinet meeting on Tuesday, according to ruling party and government officials.

The move comes as smaller merchants and self-employed people are facing the growing burdens of paying rental fees due to the government's order to suspend their business amid the protracted pandemic.

The government is reportedly planning to provide up to 1 million won to 2 million won to small retail business sites as "business stability funds," with roughly 1 million won in additional funds for subsidies for rent.

The grants will only be available to businesses that have undergone forced closures and suspensions due to the government's strengthened social distancing rules.

The government is also considering raising the amount of tax credits to landlords who voluntarily reduce rents for small businesses from the current 50 percent to up to 70 percent.

Officials are also considering including contract workers and freelancers in the new relief program. Such workers were eligible to receive 500,000 won in emergency funds in the government's fourth supplementary budget passed earlier this year. (Yonhap)