Korea Federation of SMEs Signs Business Agreement with Small Business Organizations to Expand Yellow Umbrella Subscription

Cooperation for Yellow Umbrella Enrollment to Establish Social Safety Net for Small Business Owners

From the left, Park Un-ho, President of the Korea Flower Garden Association; Shin Chan-gi, President of the Korea Industrial Materials Association; Yoo Ki-joon, President of the Korea Gas Station Association; Kim Ki-moon, Chairman of the Korea Federation of Small and Medium Business; Kim Nak-cheol, President of the Korea Egg Sorting, Packaging, and Distribution Association; Kim Moon-sik, Chairman of the Korea Gas Station Operators Cooperative; and Kim Hong-baek, Secretary General of the Korea Beauty Association Central Committee, are posing for a commemorative photo.

[Asia Economy Reporter Kim Cheol-hyun] The Korea Federation of Small and Medium Business (Chairman Kim Ki-moon) announced on the 20th that it has signed a "Business Agreement to Expand Enrollment in the Yellow Umbrella for Building a Social Safety Net for Small Enterprises and Small Business Owners" with small business organizations.

At the signing ceremony, the Korea Beauty Association Central Council (Chairman Lee Sun-sim), Korea Gas Station Association (Chairman Yoo Ki-joon), Korea Industrial Supplies Association (Chairman Shin Chan-gi), Korea Florist Association (Chairman Park Woon-ho), Korea Egg Sorting, Packaging and Distribution Association (Chairman Kim Nak-chul), and Korea Gas Station Operators Cooperative (Chairman Kim Moon-sik) agreed to guide their members about the Yellow Umbrella system and cooperate to expand enrollment.

The Yellow Umbrella is a public mutual aid system that supports small enterprises and small business owners in securing funds for livelihood stability and business recovery from threats such as business closure and old age. Since its launch in 2007, it currently has 1.36 million registered members and contributions totaling 14.1 trillion KRW.

Any representative of a small enterprise or small business owner currently operating a business can enroll in the Yellow Umbrella. Contributions can be selected in units of 10,000 KRW from 50,000 KRW to 1,000,000 KRW and paid monthly or quarterly. When a qualifying event occurs (closure, death, old age, retirement), the mutual aid payment is received. Subscribers receive benefits such as compound interest on contributions, income tax deductions up to 5 million KRW annually, protection from seizure of mutual aid funds, loans against contributions, and local government incentives for enrollment.

Additionally, various welfare services are available, including free expert consultations, free accident insurance for two years after enrollment, discounted rates for using recreational facilities and health checkups at university hospitals.

Park Yong-man, head of the Mutual Aid Business Division at the Korea Federation of Small and Medium Business, said, "Through this business agreement, we hope that more small business owners will join the Yellow Umbrella and enter the social safety net. We will strive to make the Yellow Umbrella a reliable support for small enterprises and small business owners struggling due to COVID-19."

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