"Efforts to Expand Yellow Umbrella Subscription for Small Businesses and Small Merchants"… Korea SMEs and Startups Agency-Kakao Bank 'Join Hands'

Non-Face-to-Face Yellow Umbrella Subscription System Established
KakaoBank Holds High Market Share Among Individual Entrepreneurs

The Korea Federation of SMEs announced on the 12th that it has signed a business agreement with KakaoBank for the "Yellow Umbrella Mutual Aid Project to Establish a Social Safety Net for Small Businesses and Small Merchants."

Through this agreement, a system will be created to allow non-face-to-face enrollment in the Yellow Umbrella via KakaoBank, making it more convenient to join the Yellow Umbrella.

The Yellow Umbrella is available to any representative of small businesses and small merchants conducting business. Members can choose a contribution amount from 50,000 KRW to 1,000,000 KRW in 10,000 KRW increments and pay monthly or quarterly. When payment reasons such as business closure, death, old age, retirement, disaster, illness/injury, rehabilitation/bankruptcy occur, members receive mutual aid payments. Yellow Umbrella members can benefit from an annual income deduction of up to 5 million KRW, compound interest annually, and local government incentive payments of up to 360,000 KRW. Starting next year, the income deduction limit will be expanded to a maximum of 6 million KRW.

KakaoBank holds a high market share in the individual business owner sector by providing specialized full banking services for sole proprietors (including business accounts, cards, loans, etc.).

Jung Yun-mo, Executive Vice President of the Korea Federation of SMEs, said, "This agreement is an important first step for the Yellow Umbrella and KakaoBank to establish themselves as reliable financial partners for small merchants. We hope that through this agreement, more small merchants will join the Yellow Umbrella and enter the social safety net, and we will continue to strive to expand Yellow Umbrella membership among the 7.92 million small businesses and small merchants."

Yoon Ho-young, CEO of KakaoBank, stated, "We sympathize with the purpose of the Yellow Umbrella in supporting the economic stability of small merchants, and going forward, KakaoBank will support customers to join the Yellow Umbrella more easily and enjoy practical financial benefits through innovative financial technology and platforms."

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