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## South Korean Government’s Support for Small Businesses

The South Korean government is taking steps to offer support to small businesses in order to ease the financial burdens caused by high inflation and interest rates. The Ministry of SMEs and Startups has announced plans to provide power bill assistance and other forms of support to eligible small businesses.

### Power Bill Support

Starting next month, small businesses will be eligible to receive up to 200,000 won ($150) in power bill support. To qualify for this assistance, businesses must have been established before the end of last year and be operational as of February 15, 2024. Additionally, their annual sales should not exceed 30 million won in either 2022 or 2023. Businesses with direct contracts with the Korea Electric Power Corp. (KEPCO) can apply for the support between February 21 and April 20. Those without direct contracts must provide verification documents and apply from March 4 to May 4. Once approved, the benefits will be automatically applied to subsequent electricity bills.

### Support for Energy Efficiency

In addition to power bill assistance, small business owners can also receive support for up to 40 percent of installation costs for high-efficiency electronics, including heating and cooling systems, washing machines, heat pumps, LED lighting, and refrigerators with doors. This support aims to promote energy efficiency and reduce operating costs for small businesses.

### Interest Rate Reimbursement

To ease the burden of high interest rates, the government will reimburse small businesses for interest payments exceeding 4 percent, up to 3 million won. Additionally, businesses with loans from savings banks or mutual finance cooperatives with rates of 5-7 percent can receive reimbursement for interest payments up to 1.5 million won.

### Mutual Aid System Enhancement

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

### Support for Traditional Markets

As part of efforts 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.

#### How AI legalese decoder Can Help

The AI legalese decoder can assist small businesses in understanding and navigating the eligibility criteria and application process for the various forms of government support. By using advanced AI technology, the decoder can simplify complex legal and regulatory language, making it easier for businesses to determine their eligibility and access the support they need. Additionally, the decoder can provide guidance on energy efficiency requirements and help businesses identify the most cost-effective ways to utilize the support for high-efficiency electronics.

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