Yeosu City to Support Small Business Owners with Yellow Umbrella Fund Incentive Starting May

Support of 10,000 KRW per month for 12 months for new subscribers with annual sales under 300 million KRW

[Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik] Yeosu City, Jeollanam-do (Mayor Kwon Oh-bong) announced on the 28th that it will implement the 'Yellow Umbrella Mutual Aid Hope Incentive Fund' support project starting in May to expand the social safety net by promoting mutual aid subscription among small business owners in the area.

The Yellow Umbrella Mutual Aid is a mutual aid system operated by the Korea Federation of SMEs, where small business owners can accumulate from 50,000 KRW to 1,000,000 KRW monthly, and in case of payment reasons such as business closure, old age, or death, the mutual aid fund is paid with an annual compound interest rate applied.

Benefits include up to 5 million KRW annual income deduction, protection of mutual aid funds from seizure, and accumulation of a lump sum, providing stability in life and opportunities for business recovery.

In addition, Yeosu City offers a hope incentive fund of 10,000 KRW per month, up to 12 times, along with the subscriber's monthly contribution, to small business owners with annual sales of 300 million KRW or less located in Yeosu who newly subscribe to the Yellow Umbrella Mutual Aid starting in May. If overlapping support is received with the 20,000 KRW provided by Jeollanam-do, support of up to 30,000 KRW per month can be received within the budget limit.

Yeosu City started the 'Yellow Umbrella Hope Incentive Fund' support project with a budget of 60 million KRW reflected in the second supplementary budget this year to help small business owners whose livelihoods have become unstable due to the COVID-19 crisis become self-reliant.

However, in cases of temporary mutual aid subscription for fraudulent acquisition of the incentive fund or voluntary cancellation within two years, the entire incentive fund will be reclaimed.

Applications can be made by visiting local financial institutions or accessing the Yellow Umbrella Mutual Aid website. For subscription consultation, contact the Korea Federation of SMEs (TEL 062-955-9966).

Mayor Kwon Oh-bong of Yeosu said, “I hope the city’s hope incentive fund support policy will promote subscription to the Yellow Umbrella Mutual Aid and become a strong support for building an economic safety net and business recovery for small business owners struggling due to COVID-19.”