Support Program for Small Business Owners in Gyeongsangbuk-do
- Original source
- blog.naver.com
For small business owners,
sudden illness or injury can lead to burdens not only from treatment
but also from business interruptions.
During the closure, fixed costs such as monthly rent and
utilities continue to accumulate.
To strengthen the social safety net for small business owners,
Gyeongsangbuk-do has been implementing the
'Small Business Mutual Insurance Support Program' since September 2026.
This program consists of two types of insurance.
The first is business interruption insurance, which compensates for losses
when a business is temporarily closed due to hospitalization from illness or injury.
The second is a loan assurance insurance that supports the repayment of loans
for eligible small business owners.
It is important to check which conditions apply to you,
as the two insurances have different eligibility and enrollment methods.
Insurance premiums paid by small business owners are fully supported.
This initiative is a collaboration between the insurance sector and local governments.
It will operate according to an annual plan for three years, from September 2026 to August 2029.
The insurance premiums for small business owners will be fully covered.
However, the two insurances differ in support targets and enrollment methods.
The business interruption insurance automatically enrolls eligible applicants,
while the loan assurance insurance requires a separate enrollment process and review.
1. Business Interruption Insurance
What if you have to close your business due to hospitalization?
This insurance is available to small business owners who have been operating for over a year
and have their business registered in Gyeongbuk.
It compensates for fixed costs like rent and utilities incurred during the closure.
The first two days of hospitalization are excluded from compensation,
and from the third day of hospitalization, you can receive up to 50,000 won per day
for a maximum of 10 days.
Eligible small business owners are automatically enrolled without a separate process.
Additionally, even if the business has been operating for less than a year as of September 2026,
if the operating period exceeds one year within the insurance coverage period,
they will be included in the coverage.
2. Loan Assurance Insurance
This insurance supports loan repayment in unexpected situations.
It is available to small business owners aged 20 to 65
who are utilizing the Gyeongbuk Credit Guarantee Foundation's 'Butrim Financial' program.
In case of death or diagnosis of major diseases,
the insurance covers loan repayment up to a limit of 10 million won.
This insurance is not automatically enrolled; it requires the following steps:
Complete consent for third-party information through the Gyeongbuk Credit Guarantee Foundation.
Receive a personal authentication and consent link from the insurance company.
Submit consent, personal authentication, and disclosure obligations.
Complete final enrollment after the insurance company's review.
It is important to confirm if you have completed the enrollment process.
Check the differences between the two insurances:
Business Interruption Insurance vs. Loan Assurance Insurance
Eligibility: Small business owners with over a year of operation in Gyeongbuk vs. Users of Butrim Financial aged 20-65
Coverage: Compensation for fixed costs during business interruption vs. Loan repayment coverage upon death or major illness
Coverage Limit: Up to 500,000 won per day for a maximum of 10 days vs. Up to 10 million won
Enrollment: Automatic for eligible owners vs. Requires separate procedures
Insurance premiums are fully supported for both types.
Please check if you are eligible for support.
For further details on enrollment methods, coverage, and claims procedures,
you can contact the Gyeongsangbuk-do Economic Promotion Agency.
This program is designed to prevent unexpected illnesses and injuries from becoming a burden on livelihoods.
Explore the benefits applicable to your business and ensure you can receive help when needed.
Source :https://blog.naver.com/gyeongbuk_official/224447047048
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