Gangdong-gu Fully Supports Small Business Owners' Flood Insurance Premiums Amid COVID-19 Challenges

District Supports Self-Payment Costs Incurred When Small Business Owners Enroll in Flood and Windstorm Insurance

[Asia Economy Reporter Park Jong-il] Gangdong-gu (Mayor Lee Jeong-hoon) is the first autonomous district in Seoul to fully support flood and wind disaster insurance premiums for small business owners exhausted by COVID-19.

Flood and wind disaster insurance is a national policy insurance designed to practically compensate for property damage caused by natural disasters such as typhoons, heavy rain, and earthquakes.

Compared to the current support of 30-35% for damage restoration costs in the event of natural disasters, subscribing to flood and wind disaster insurance can provide compensation up to 90%. However, due to vague resistance to insurance and low awareness of flood and wind disasters, subscription rates are low, resulting in insufficient actual compensation when flood and wind disaster damage occurs.

To address this, the district plans to support the personal burden (20,000 to 25,000 KRW) incurred when small business owners subscribe to the insurance, allowing them to join for free.

In particular, small business owners in areas that experienced flooding damage in 2010-2011 and those managed as flood-vulnerable areas will be actively encouraged to subscribe to flood and wind disaster insurance so that many residents can benefit.

Lee Jeong-hoon, Mayor of Gangdong-gu, said, “If flood and wind disaster damage is added to the difficulties faced by small business owners due to COVID-19, it would be a great tragedy. Since flood and wind disaster insurance is a good alternative that can protect valuable property and family happiness, I ask for much interest and active subscription to flood and wind disaster insurance that can provide practical help for natural disaster recovery.”

The application period for free support of personal burden for flood and wind disaster insurance for small business owners is until June 19, 2020, and the insurance subscription period is one year.

Applications can be made at the nearest community service center or the district office’s flood control department, and basic livelihood security recipients and lower-income groups can also subscribe free of charge.

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