Changwon Special City Establishes Nation’s First Social Safety Net Free from Business Closure Concerns

For the first time in the nation, a social safety net has been established in Changwon to ensure that small business owners no longer have to worry about closing their businesses.

On September 11, Changwon Special City held the nation’s first ‘Employment Insurance Business Agreement Ceremony for Small Business Owners in Large Retail Stores’ in the mayor’s reception room, aiming to strengthen the social safety net for local small business owners.

Changwon Special City Holds Nation’s First ‘Large Retail Store Tenant Small Business Owner Employment Insurance Enrollment Promotion’ Agreement Ceremony.

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The ceremony was attended by the Gyeongnam Regional Office of SMEs and Startups, the Small Enterprise and Market Service, Lotte Department Store Changwon Branch, and Shinsegae Department Store Masan Branch. The main objective is to expand employment insurance enrollment for small business owners facing difficulties due to the economic downturn and shrinking consumer spending, helping them prepare for involuntary closure.

Based on this agreement, the city plans to collaborate with the Small Enterprise and Market Service and the Gyeongnam Regional Office of SMEs and Startups to operate a dedicated employment insurance registration desk for small business owners in department stores. The city will also actively promote enrollment and raise awareness of the system through various channels, including local publicity networks.

This agreement is expected to enhance small business owners’ trust in the system and strengthen the foundation for community cooperation. The city intends to take an active role in ensuring that small business owners facing crises can receive practical support by utilizing the employment insurance system.

Small business owners who enroll in employment insurance and pay monthly premiums will be eligible to receive unemployment benefits in the event of involuntary closure, such as a drop in sales or deteriorating health. In addition, they can receive up to 80% of their premiums refunded for five years, depending on their grade, through the Small Enterprise and Market Service. They can also apply for the 20% premium subsidy from Gyeongsangnam-do, further expanding the benefits available.

Jang Geumyong, Acting Mayor of Changwon Special City, stated, “We will actively cooperate at the city level to stabilize the livelihoods of small business owners and expand the social safety net,” adding, “I hope this agreement will serve as a starting point for providing real help to local small business owners.”

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