Korea Federation of SMEs and Seoul City Sign Business Agreement on '2020 Noryanwoosan Hope Incentive Support'

Headquarters of the Korea Federation of Small and Medium Business

[Asia Economy Reporter Kim Daeseop] The Korea Federation of Small and Medium Business (KSMB) announced on the 10th that it has signed a "2020 Yellow Umbrella Hope Incentive Support Business Agreement" with the Seoul Metropolitan Government.

This agreement was established to expand the subscription of the Yellow Umbrella among micro and small business owners and to strengthen the social safety net. The "Yellow Umbrella" is a social safety net system introduced in 2007. The cumulative number of subscribers exceeds 1.6 million.

The Yellow Umbrella Hope Incentive Support is a project in which local governments that have signed agreements with the KSMB provide incentive payments for a certain period to promote the subscription to the Small Business and Small Merchant Mutual Aid Yellow Umbrella, which prepares for business closure, old age, and death of small business owners.

Currently, the program is implemented in all 17 metropolitan local governments nationwide, as well as some basic local governments such as ▲Bupyeong-gu, Incheon ▲Dangjin-si, Chungnam ▲Gwangyang-si, Jeonnam ▲Gokseong-gun, Jeonnam.

Seoul Metropolitan Government was the first local government nationwide to implement the Yellow Umbrella Hope Incentive Support project in March 2016. Small business owners with annual sales of 200 million KRW or less operating businesses in Seoul who subscribe to the Yellow Umbrella receive an additional monthly 20,000 KRW incentive for one year from the subscription date, up to a maximum of 240,000 KRW as the Hope Incentive.

The Hope Incentive is provided until the budget is exhausted. Following the 5.4 billion KRW support last year, Seoul plans to provide 6.4 billion KRW this year, an increase of 1 billion KRW compared to the previous year.

Kim Gi-moon, Chairman of the KSMB, said, "The Hope Incentive Support project is expanding beyond metropolitan local governments to basic local governments," and added, "We will do our best to further expand the benefits for Yellow Umbrella subscribers so that it can become the representative social safety net for small business owners."

This content was produced with the assistance of AI translation services.