The South Korean government plans to offer support to small businesses such as power bill assistance to alleviate the financial strain on small businesses amid high inflation and interest rates.

According to the Ministry of SMEs and Startups, the government will provide up to 200,000 won ($150) in power bill support to small businesses starting next month.

To qualify, businesses should have been established before the end of last year and be operational as of February 15, 2024, with annual sales not exceeding 30 million won in either 2022 or 2023.

Businesses with contracts directly with the Korea Electric Power Corp. (KEPCO) can apply between February 21 and April 20.

Those without direct contracts must provide verification documents and apply from March 4 to May 4. Once approved, benefits will be automatically applied to subsequent electricity bills.

In efforts to promote energy efficiency, small business owners can receive support of up to 40 percent of installation costs for high-efficiency electronics like heating and cooling systems, washing machines, heat pumps, LED lighting, and refrigerators with doors.

To ease the burden of interest rates, small businesses will be reimbursed for interest payments exceeding 4 percent, up to 3 million won, and for interest on loans from savings banks or mutual finance cooperatives with rates of 5-7 percent, up to 1.5 million won.

The government also plans to enhance the mutual aid system for small business owners, broadening the payment reasons to include natural and social disasters, illnesses, injuries, recovery, and bankruptcy, alongside existing reasons such as business closure, death, retirement, or old age.

In an effort to revitalize traditional markets, the government will brand 58 markets with over 100 years of history and provide marketing support. Other measures include benchmarking foreign markets and supporting environmental improvements such as parking lot installation and facility enhancements.

By Kim Dong-eun and Chang Iou-chung

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]