Seoul City Fully Supports Small Business Owners' 'Wind and Water Disaster Insurance Premiums' with Kakao Pay and SK Shieldus

Korean Red Cross, Kakao Pay, and SK Shieldus Sign 'Third-Party Donation Agreement' for Weather Disaster Insurance
Full Support for 10,000 to 40,000 KRW Deductible for Small Business Weather Disaster Insurance... Up to 80,000 Beneficiaries Expected

[Asia Economy Reporter Lim Cheol-young] The Seoul Metropolitan Government announced on the 29th that it will fully support the self-pay amount required when small business owners in Seoul subscribe to ‘Fengshui Disaster Insurance’ in partnership with private companies Kakao Pay and SK Shieldus.

‘Fengshui Disaster Insurance’ is a national policy insurance designed to support property damage caused by natural disasters and is an advanced disaster management system. The government and local governments cover 70-92% of the insurance premiums that subscribers must pay, so subscribers only need to pay 8-30% of the self-pay amount.

The city aims to activate subscription to ‘Fengshui Disaster Insurance,’ which provides actual restoration costs and compensation when damage occurs due to natural disasters, thereby reducing the financial burden on small business owners and stabilizing their livelihoods. As of July, the subscription rate for Fengshui Disaster Insurance in Seoul is 8%, and the subscription rate among small business owners’ stores and factories is very low at 0.9%.

Small business owners who subscribe to ‘Fengshui Disaster Insurance’ can receive compensation ranging from a minimum of 10 million KRW to a maximum of 100 million KRW for property damage caused by natural disasters. Insurance payouts can be used to restore damage for small business owners whose stores were flooded due to heavy rain, stores whose signboards were blown off by strong winds, or factories whose equipment was damaged by typhoons.

On the same day, the Seoul Metropolitan Government signed a ‘Third-Party Donation Business Agreement (MOU) to Support Small Business Owners’ Fengshui Disaster Insurance Subscription’ with the Korean Red Cross, Kakao Pay, and SK Shieldus at Seoul City Hall. According to the agreement, Kakao Pay will donate 300 million KRW, and SK Shieldus will donate 500 million KRW. The Korean Red Cross will use the donations received from the two companies to fully support the self-pay insurance premiums when small business owners subscribe to Fengshui Disaster Insurance. It is expected that up to 80,000 small business owners will benefit.

To subscribe to ‘Fengshui Disaster Insurance’ with no self-pay amount, from the 30th, applicants can submit simple documents on the SK Shieldus Fengshui Disaster Insurance subscription website or call the customer center. From early November, subscription applications will also be accepted through the KakaoTalk or Kakao Pay apps.

Meanwhile, the Seoul Metropolitan Government and Kakao Pay agreed to cooperate in promoting ‘Fengshui Disaster Prevention Action Guidelines’ to encourage citizens not to throw trash into rainwater drains. They plan to discuss specific implementation measures going forward. Han Yoo-seok, Director of the Water Circulation Safety Bureau of Seoul, said, “By subscribing to ‘Fengshui Disaster Insurance,’ small business owners who suffer property damage can restore their losses with realistic compensation,” and added, “We hope small business owners who have not yet subscribed will take this opportunity to do so promptly.”