Small Business Owners' Natural Disaster Insurance Burden Reduced... "KakaoPay Donates 1 Billion Won"

Sogongyeon, MoS-SMB and Kakao Pay Sign Business Agreement

Small Business Flood and Windstorm Insurance Subscription Promotion Agreement Ceremony. From the left, Jo Juhyun, Vice Minister of the Ministry of SMEs and Startups; Shin Wongeun, CEO of Kakao Pay; Oh Sehee, President of the Korea Federation of Small and Medium Business.

On the 15th, the Korea Federation of Micro Enterprise (KFME) signed a "Cooperation Agreement to Promote Flood and Windstorm Insurance Enrollment for Small Business Owners" with the Ministry of SMEs and Startups and Kakao Pay at Kakao Pay's headquarters in Pangyo, Gyeonggi Province. The signing ceremony was attended by Cho Ju-hyun, Vice Minister of the Ministry of SMEs and Startups, Oh Se-hee, President of KFME, and Shin Won-geun, CEO of Kakao Pay.

The agreement was promoted to minimize the damage to small business owners caused by natural disasters. Currently, when small business owners enroll in flood and windstorm insurance, they incur a personal payment of about 8-30% in addition to the subsidy from the Ministry of the Interior and Safety. Through this agreement, the entire amount will be fully supported, reducing the financial burden of enrolling in flood and windstorm insurance.

Kakao Pay will donate 1 billion KRW, and KFME will deposit this with the insurance companies to cover the subscribers' personal payments. Until the funds are exhausted, small business owners can enroll in flood and windstorm insurance without any personal payment. The flood and windstorm insurance is renewed annually, meaning that for one year, they can receive free coverage benefits against flood and windstorm damage.

KFME plans to accept flood and windstorm insurance enrollment applications from small business owners next month and forward them to the insurance companies. Enrollment applications can also be made through the Kakao Pay platform. If users request enrollment start notifications on Kakao Pay, they will receive an alert message on the day free enrollment for flood and windstorm insurance begins.

Oh Se-hee, President of KFME, said, "I heard that flood and windstorm insurance played a role as a social safety net and helped recovery when significant flood damage occurred last year," adding, "Through this agreement, I hope small business owners who hesitated to enroll due to costs will be relieved of the burden and be able to prepare for risks."