The Ministry of SMEs and Startups will implement the 'three major support projects' to reduce the management burden of small business owners facing crises due to high interest rates and inflation. The focus is on lowering fixed costs through utility bill support and interest-free card payments, and supporting the liquidity of small business owners.
Director General Hwang Young-ho of the Ministry of SMEs and Startups noted in a briefing held at the Seoul Government Complex in Jongno on the 24th that "we are providing burden reduction credits, the Biz Plus Card, and support for delivery and shipping expenses for small business owners suffering from shrinking domestic demand and rising expenses."
This initiative is part of the follow-up measures to the 'comprehensive plan for small business owners and self-employed individuals' announced last July. The support project for delivery and shipping expenses was first implemented in February with an investment of 207.3 billion won.
Director General Hwang said, "As the speed of the delivery and shipping expense support project has increased, we plan to execute the allocated budget by the end of the year."
The burden reduction credits and Biz Plus Cards will be supported at a scale of 1.566 trillion won and 700 billion won, respectively, through the first supplementary budget of this year.
First, the burden reduction credit program aims to support credits of 500,000 won that can be used for utility bills (electricity, gas, water fees) and the four major insurance premiums for small business owners with annual sales of 300 million won or less last year or this year. Multiple enterprises can apply for support for only one business per person.
When small business owners select one card company during the application stage, all their existing credit and debit cards with that company will be automatically registered, allowing them to use the credits. If payment is made with the registered card for utility bills (electricity, gas, water fees) and the four major insurance premiums, the credits will be automatically deducted without additional proof.
Applications can be submitted from the 14th of next month until November 28 through the 'Small Business Owner 24' or Small Enterprise & Market Service (SEMAS) call center. The credits can be used until December 31 of this year.
The Biz Plus Card program is a system that supports small business owners with medium to low credit (NICE credit score 595 to 839) to receive credit cards with a limit of up to 10 million won. Using the guarantee certificate from the regional credit guarantee foundation as collateral, they can obtain new credit cards to pay various expenses needed for business operations, such as material costs or office equipment purchases.
Interest-free installments are also possible for up to six months. For the first year, cashback benefits of up to 3% (maximum of 100,000 won) on card usage will also be provided. Card annual fees and guarantee fees will be fully waived, allowing cards to be issued without additional expenses.
The Biz Plus Card must be applied for after submitting a guarantee application through the regional credit guarantee foundation's 'Guarantee Dream' application and then applying for card issuance through the Industrial Bank of Korea's 'IBK Card' application. Applications can be made from the 14th of next month until December 31. It will take up to 10 business days for the card to be delivered after applying for the guarantee.
Director General Hwang stated, "We have broadened the scope of utilization so that small business owners can use it broadly, except in places like entertainment businesses," adding, "If misuse is confirmed, there will be measures to recover the funds later."
He added, "We will promote this support measure without any lapses to alleviate the management burden of small business owners, focusing all our efforts on listening to and solving the difficulties they face."