Yellow Umbrella Hope Incentive Increased by 3.1% from Last Year... Strengthening Social Safety Net for Local Small Business Owners

This year's support amounts to 26.4 billion KRW
"Support available for about 51.6% of annual subscribers"

Busan City, Seoul Dobong-gu, Yeongdeungpo-gu, and other metropolitan and basic local governments have taken steps to strengthen the social safety net for local small business owners.

The Korea Federation of SMEs announced on the 22nd that the scale of support for the Yellow Umbrella Hope Incentive this year has increased by 3.1% compared to the previous year, reaching 26.4 billion KRW.

The Yellow Umbrella Hope Incentive system is a program where local governments additionally contribute up to 360,000 KRW annually for small business owners who subscribe to the Yellow Umbrella.

This year, 17 metropolitan local governments and 13 basic local governments nationwide plan to provide support. If the business address falls under the jurisdiction of the local government and meets requirements such as sales criteria set by the local government upon subscribing to the Yellow Umbrella Mutual Aid, support of 10,000 to 30,000 KRW per month can be received for one year.

The support targets are mostly small business owners with annual sales under 300 million KRW. Applications can be made by subscribing to the Yellow Umbrella Mutual Aid before the local government’s budget is exhausted.

Seoul and Incheon plan to support 6 billion KRW and 2 billion KRW respectively this year. Additionally, basic local governments such as Dobong-gu, Yeongdeungpo-gu, Dongjak-gu, Seodaemun-gu, and Geumcheon-gu in Seoul, and Jung-gu, Bupyeong, and Gyeyang-gu in Incheon have separately prepared additional budgets, allowing small business owners in these areas to receive overlapping support. Busan City plans to increase its support scale by 50% compared to the previous year, providing 3 billion KRW this year.

Lee Chang-ho, head of the Mutual Aid Business Division at the Korea Federation of SMEs, explained, “The Hope Incentive prepared by local governments corresponds to about 129,000 people, or approximately 51.6% of the annual Yellow Umbrella subscribers, who can receive support.”

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