SMEs Ministry Announces Three Major Measures to Eliminate Disaster Blind Spots in Traditional Markets

Air Conditioning Equipment Support: Up to 5 Million Won per Store
Full Expansion of One-Stop Support Centers in Traditional Markets
Fire Insurance Compensation Limit Raised to 100 Million Won

The Ministry of SMEs and Startups has decided to implement three support measures to address disaster blind spots in traditional markets: providing air conditioning equipment, expanding the operation of one-stop support centers, and increasing the compensation limit for fire insurance.

On August 7, at the second relay meeting for small business recovery and safety net enhancement held at Dream Square in Mapo-gu, Seoul, the Ministry announced its “Plan to Eliminate Disaster Blind Spots in Traditional Markets.”

Hansung Sook, Minister of SMEs and Startups, is delivering a greeting at the "Relay Meeting for Small Business Recovery and Safety Net Expansion" held on the 7th at Dream Square in Mapo-gu, Seoul. Ministry of SMEs and Startups

First, to respond to heat waves, the ministry will provide air conditioning equipment such as cooling fog systems and portable air coolers to individual stores or common areas in traditional markets through the Traditional Market Safety Management Package Project. The support limit is up to 5 million won per individual store. Traditional markets can apply for the support project announced by the ministry, and recipients will be selected through an evaluation process. The ministry plans to begin accepting applications for the first phase of the 2026 Traditional Market Safety Management Package, which includes air conditioning support, at the end of this month.

One-stop support centers will also be operated in all traditional markets affected by natural or social disasters. The one-stop support centers are led by the Ministry of SMEs and Startups, and consist of regional offices of the ministry, local centers of the Small Enterprise and Market Service, and regional credit guarantee foundations. Currently, the centers are focused on markets that have suffered significant damage, assisting with damage surveys and issuing disaster confirmation documents required for financial support. Going forward, the centers will be operated in all traditional markets affected by disasters.

The compensation limit for the fire insurance product for traditional market merchants will also be raised from 60 million won to 100 million won. Previously, merchants could insure up to 30 million won for buildings and facilities/equipment and 30 million won for movable property, for a total of 60 million won. Now, each category will be increased to 50 million won, allowing merchants to insure up to 100 million won in total.

Each local government currently supports 60 to 80 percent of the insurance premiums depending on its financial situation. If the central government, which now has a legal basis to provide support, also joins, traditional market merchants will be able to receive fire damage compensation at a relatively low cost. In addition, reflecting merchant demand, new special clauses will be introduced to provide consolation payments for burns and the five major types of bone fracture surgeries (an additional annual premium of 300 won, with a payment of 500,000 won per accident).

Meanwhile, in line with the purpose of the relay meetings, Minister Han announced tasks that could be resolved quickly among the suggestions made by small business owners at the first meeting.

Regarding the request to expand promotion of disaster-related small business programs, the ministry has begun consultations to link publicity with the Ministry of the Interior and Safety's storm, flood, and earthquake disaster insurance system. The ministry plans to distribute promotional materials to 1,393 markets in cooperation with the National Federation of Merchant Associations. The ministry will also continue to promote employment insurance support programs to small business owners using its programs, strengthen links with the Hope Return Package and the National Employment Support System, and provide ongoing support. In addition, to help small business owners respond to crises before closing their businesses, the ministry will provide consulting to those using special policy fund repayment and interest reduction programs, supporting crisis management and business closure as needed.

On this day, Minister Han said, "Providing air conditioning equipment, expanding the operation of one-stop support centers, and raising the compensation limit for fire insurance are expected to provide practical help to traditional market merchants." She added, "Among the suggestions made at today's meeting, support for installing AI (artificial intelligence) CCTV and easing budget allocation requirements for smooth implementation are tasks that can be addressed quickly, so we will announce improvements at the third relay meeting."