Increase in Applications for Closure Support Fund, Achieving 90% of Annual Target in One Year

The 'Hope Return Package One-Stop Closure Support' program by the Ministry of SMEs and Startups is gaining significant traction among self-employed individuals.

This program, which began earlier this year, supports the costs of business closure for small businesses, with 27,366 applications submitted within just three months, reaching 90% of the annual target.

This number is close to last year's total applications, and the Ministry plans to increase the support target by an additional 10,000 through a supplementary budget in the second half of the year.

The number of applications received by the end of the first quarter has shown a 64% increase compared to the same period last year, rising to 23,785 applications. This surge is attributed to the increasing number of self-employed individuals facing the threat of business closure due to the economic situation.

Notably, this year, the support limit for business closure costs has increased to a maximum of 4 million won, up by 1.5 million won, allowing more small business owners to benefit from the program.

Last year, applications exceeded expectations, leading to 7,000 more approvals than the initial target of 22,000. Consequently, the Ministry has expanded the support target this year to reflect the high demand.

However, an official noted that "about 20% of applicants do not qualify for actual funding due to eligibility issues," adding that "additional support in the second half may be challenging, prompting the formation of a supplementary budget."

Meanwhile, the disbursement of the Yellow Umbrella Fund is also on the rise. The number of payments in the first quarter of this year already accounts for approximately 30% of last year's total payments, with a high likelihood of breaking past records.

In this context, concerns are being raised in the small business sector that the '1 million closure era' may become a reality this year.

Lee Jeong-hee, a policy advisor at the Small Business Association, emphasized in a recent press conference that "the number of self-employed individuals closing their businesses is expected to exceed 1 million this year," stressing the urgent need for solutions to address this issue.

Song Chi-young, the chairman of the Small Business Association, also argued that "the domestic market stagnation and economic recession are putting small businesses in extreme peril, necessitating policy consideration for small businesses in the upcoming presidential election."

Image Source: On the 29th, a rental notice is attached to a closed store in Chungmuro, Jung-gu, Seoul. 2025.4.29/News1, A closed shop appears desolate in a restaurant area in downtown Seoul. 2025.2.25/News1