Busan City Launches ‘Childcare Support Package Project’ to Help Small Business Owners Overcome Low Birthrate Crisis

si-KB Financial Group-Korea Economic Association, Follow-up Measures for Business Agreement... Promotion of Customized Support Project for Small Business Owners' Childbirth and Parenting

December 30 - January 17 Online Applicant Registration, Random Draw 1st Selection → Document Review → Final Recipient Confirmation

Busan City will officially launch the ‘Busan Small Business Owners Childcare Support Package Project’ to overcome the low birthrate crisis and alleviate the burden of business suspension or closure for 470,000 small business owners in Busan.

This project is a follow-up measure to the ‘Busan Small Business Owners Childcare Support Package’ business agreement signed on September 11 between the city, KB Financial Group, and the Korea Economic Association. It is being promoted with full funding (3 billion KRW) from KB Financial Group, which supports customized low birthrate policies for small business owners.

The ‘Busan Small Business Owners Childcare Support Package Project’ consists of three customized support programs for childbirth and parenting for small business owners: ① Support for substitute labor costs for childbirth and childcare ② Support for public childcare services for small business owners ③ Childcare support funds for small business owners without housing.

Considering the business environment of small business owners who are relatively vulnerable to childbirth and childcare support policies compared to wage workers, the city has prepared a customized support project so that childbirth and childcare do not lead to interruption of livelihood activities, allowing them to comfortably balance childbirth, childcare, and their businesses.

For efficient and smooth project implementation, the city’s Small Business Owners Comprehensive Support Center, the representative support hub for small business owners, will oversee the project, collaborating with the city’s Metropolitan Childcare Support Center.

▲ Support for Substitute Labor Costs for Childbirth and Childcare for Small Business Owners

This aims to prevent business suspension or closure in advance by supporting substitute labor costs for small business workplaces that were difficult to support under existing childbirth and childcare policies, for up to three months.

Since small business owners consist of more than 70% one-person self-employed individuals, the burden of management increases due to childbirth or childcare, which is likely to lead to business suspension or closure.

To prevent this, when hiring substitute personnel to ease childcare burdens for small business owners with children born after January 1, 2024, labor costs will be supported up to 1 million KRW per month for a maximum of three months.

Similarly, when hiring substitute personnel to fill labor gaps caused by employees taking maternity or parental leave before and after childbirth at small business workplaces, the same support will be provided.

▲ Support for Public Childcare Services for Small Business Owners

To alleviate the childcare burden of parent small business owners who need care, the use of public childcare services will be supported for up to 60 hours per month and up to six months.

Since small business owners are expected to have high demand for childcare services due to joint spousal business operations, irregular working hours, frequent holidays, and night operations, the hourly usage fee for public childcare services for small business owners (including workplace employees) with children aged 12 or younger who use the service will be fully supported for up to 60 hours per month and up to six months, allowing them to effectively enjoy the service free of charge.

▲ Childcare Support Funds for Small Business Owners Without Housing

To support childbirth and childcare, 1 million KRW per person will be provided as childcare support funds to small-scale tenant small business owners who do not own residential or commercial real estate.

Among tenant small business owners (including spouses) who do not own either residential or commercial real estate and have children aged 8 or younger, 1 million KRW per person will be provided as childcare support funds to help ease the economic burden of small-scale small business owners who are raising children amid difficult economic conditions.

The city will begin accepting applications for the support project through the Busan Small Business Owners Childcare Support Package Project website for three weeks from December 30 to January 17 next year, starting with the project announcement on the 18th. After a random draw for the first selection, the final recipients will be confirmed following document review.

For more details, inquiries can be made by phone to the call center of the project executing agency, the Small Business Owners Comprehensive Support Center (Busan Economic Promotion Agency), or by checking the support project website.

Mayor Park Hyung-jun stated, “I hope that this ‘Busan Small Business Owners Childcare Support Package Project’ in partnership with KB Financial Group will greatly help our city’s small business owners maintain a balanced life between home and work and create an environment where they can raise their children with peace of mind.”

Busan City Hall.

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