The government will begin to accept applications for pulled-up state compensation from small businesses that suffered major losses due to tightened social distancing last month.

The Ministry of SMEs and Startups said on Monday that around 550-thousand businesses subject to operation restrictions between December 6 and January 16 can submit online applications for advanced payouts from January 19 until February 4.

The applicants will receive total advanced compensation of five million won, two-point-five million won for both the fourth quarter last year and first quarter this year, within three business days.

Should the amount of compensation exceed five million won after a review of the applicant's credit score, guarantee limit and tax delinquency, the additional amount will be paid by mid-February.

In line with an aid package for pandemic-hit businesses announced last month, the government will increase the overall compensation and complete payouts before the Lunar New Year holiday starting in late January.