No Worries About Compensation Even If Fire Strikes... Gyeongnam Province Supports Traditional Market Fire Insurance Enrollment Again This Year!

Fire Insurance Premium Support Leads to 382% Increase in Enrollment

Choose 1-3 Year Subscription Period, Up to 120,000 KRW Support

Gyeongnam Province will implement a support project for subscribing to fire insurance for traditional markets this year.

[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Seryeong] Gyeongsangnam-do will actively promote the traditional market fire mutual aid subscription support project again this year.

The traditional market fire mutual aid, operated by the Small Enterprise and Market Service since 2017, is a product exclusively for traditional markets that allows merchants to prepare a mutual aid fund through their participation, with operational costs supported by the government, enabling fire coverage at a lower cost than general insurance.

Unlike private fire insurance, which mostly uses a proportional compensation method, this indemnity product fully compensates the confirmed damage amount within the limit.

Gyeongnam Province first introduced this project in 2019 to reduce the fire mutual aid cost burden on small merchants in traditional markets and increase the subscription rate of market stores in the province.

To prepare for fires in traditional markets, where the possibility of large-scale fires is high, and to enable rapid damage recovery, the subscription support project is implemented annually.

As of the end of last year, the number of fire mutual aid subscriptions reached 2,663, showing a 382% increase compared to 552 subscriptions as of December 2018, before the project was implemented.

The project targets individual stores in traditional markets registered and recognized under Article 2 of the Special Act on Traditional Markets.

The subscription period can be selected from 1 year, 2 years, or 3 years, with a maximum subscription limit of 60 million KRW, and partial mutual aid fees of up to 120,000 KRW per subscribed store are supported.

Subscriptions can be applied for online through the traditional market fire mutual aid website or by mail, and detailed information can be obtained by contacting the website or the department in charge of traditional market fire mutual aid.

A provincial official said, “Thanks to the fire alarm facility installed with support from the Ministry of SMEs and Startups, the fire at Dongbu Market in Jinju City last month was detected early and extinguished, minimizing damage, and compensation was received through mutual aid subscription. We hope merchants actively subscribe to the fire mutual aid, which will be a reliable support against fire damage.”