Small Business Owners Struggling to Take Parental Leave... Seoul City to Support Substitute Workers and Costs

'All-Out Effort to Overcome Low Birthrate' Customized Support Plan Announced
KB Financial Group to Fully Fund 5 Billion KRW for Project Expenses
Alternative Workforce and Labor Costs to Be Supported for 6 Months

The Seoul Metropolitan Government will support substitute personnel for childcare leave so that small business operators can also take childcare leave. In particular, to address care gaps caused by nighttime operations, the city will support not only private service usage fees but also utility bills in case of business closure.

On the 26th, Seoul announced that it will start the "Customized Childbirth and Childcare Support Triple Package" from October for 1.53 million small business operators, who are the lifeblood of Seoul's economy.

Previously, Seoul had announced support measures including the nationwide first "childbirth allowance" for sole proprietors and freelancers who had been excluded from low birthrate countermeasures, and "spouse childbirth leave support funds" for sole proprietors and freelancers whose spouses gave birth. However, small business operators who work together as a couple or employ even one staff member were excluded from this support, unlike solo business owners, leaving them in a blind spot of childbirth and childcare support policies. In response, Seoul stated that it has prepared new measures to provide customized support for small business operators who want to have and raise children, regardless of whether they have employees.

In particular, this measure is more meaningful as it is promoted through active participation of companies, which is an important pillar in overcoming the low birthrate. KB Financial Group, which shares the will to address Seoul's low birthrate issue, has agreed to fully support the project with 5 billion KRW in funding.

The core measures are ▲support for substitute personnel for childcare leave ▲linkage with childcare services ▲support for fixed costs such as rent and utility bills incurred during leave due to pregnancy and childbirth. First, unlike large corporations, it is difficult for small business operators to find substitute personnel, and even if they hire, they feel burdened by additional labor costs. Therefore, substitute personnel for childcare leave will be supported so that small business operators can also take childcare leave. In connection with the existing "SME Work-Life Balance Point System," experienced women will be dispatched, and 2.4 million KRW per month (living wage level) will be supported for six months, totaling 14.4 million KRW.

Since small business operators often operate during holidays and nighttime, there are care gaps that cannot be filled by existing public childcare services such as daycare centers. Therefore, if private services are used, the city will support the costs. For caregivers of children aged 3 months to 12 years, the city will cover 10,000 KRW per hour of childcare fees, excluding a 5,000 KRW self-pay portion. Additionally, many small business operators face situations where they must close their stores upon childbirth, leading to business closure or even giving up on pregnancy and childbirth. To alleviate economic burdens, the city will support various fixed costs such as rent and utility bills incurred during the leave period.

Accordingly, Seoul Mayor Oh Se-hoon will sign a "Joint Cooperation Agreement to Overcome the Low Birthrate Crisis" this afternoon at Seoul City Hall with KB Financial Group Chairman Yang Jong-hoe and Korea Economic Association Chairman Ryu Jin. Through this agreement, Seoul will implement customized low birthrate countermeasures targeting small business operators, KB Financial Group will provide 5 billion KRW in project funding to Seoul, and the Korea Economic Association will be responsible for business network support, mentoring for small business operators, and promotion campaigns. Mayor Oh said, "We are starting the 'Customized Childbirth and Childcare Triple Package' for small business operators and sole proprietors who have been considered a blind spot in low birthrate policies, and we will continue to cooperate with companies that share the will to overcome the low birthrate."

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