South Korea Unveils KRW59T Support Package for Small Businesses

Seoul, South Korea - South Korean President Yoon Suk Yeol unveiled a comprehensive small business support package worth KRW59 trillion (US$41.9 billion) in fiscal year 2024, marking this sector's largest allocation in the country's history.

Since taking office, the government has already disbursed over KRW30 trillion (US$21.3 billion) in supplementary budget support, followed by two additional support measures totaling KRW36 trillion (US$25.6 billion) implemented in July and October 2023.

Small businesses and self-employed workers represent 95% of South Korea's enterprises and account for 45% of total employment, with self-employed individuals comprising 20% of the nation's workforce.

The initiative includes reducing delivery platform commission fees by at least 30% for small vendors, targeting the current average intermediary commission of 9.8%. 

Traditional markets will be entirely exempt from these fees.

Mobile payment gateway fees, currently ranging from 5% to 14%, will be restructured with shorter settlement periods, with implementation expected by year-end.

The government will establish 90 complaint centers nationwide to address malicious online reviews affecting small businesses.

A regional commerce development fund of KRW500 billion (US$355.5 million) will be created by 2027, and plans to train 1,000 private-sector commercial district planners will accompany it.

To support local business development, the administration will establish ten regional creative spaces nationwide, modeled after French local production facilities.

The government will also modify commercial district designation requirements to ensure equitable policy benefits for regions with declining populations.

For consumer protection, the administration will implement a deposit system for reservations and improve dispute resolution standards to address issues such as no-shows affecting small businesses.

The plan includes exempting diligent business owners from fines of up to KRW3 million (US$2,133) for customers who violate single-use cup regulations without the owner's knowledge.

The government will establish a dispute resolution body to handle conflicts related to online advertising contracts, which typically exceed several million won annually.

*US$1 = KRW1,406.59