Increasing difficulties for small business owners...KRW 1.3 trillion in business closure deduction 'maximum'

As the domestic economy continues to slow down, the amount of business closure deductions paid by small business owners has reached a record high.

According to the Korea Federation of Small and Medium Businesses, the yellow umbrella closure deduction paid this year was KRW 1.319 trillion until last month, up 10.1% from the same period last year.

However, the number of closures was 102,940, a slight decrease from last year.

In addition, the amount of subrogation payments, which were paid off by small business owners from the Korea Credit Guarantee Foundation, has also increased significantly.

According to data received by Oh Se-hee of the Democratic Party of Korea from the Korea Credit Guarantee Foundation, the amount of subrogation payments increased from about 58 billion won in 2022 to about 1.7 trillion won last year, and this year increased significantly to 2.578 trillion won by October.