Baemin Introduces 100 Billion KRW Loan Program to Support Small Business Owners

1 Trillion KRW Scale Agreement-Backed Loan Program
Additional Support Measures for Riders Included

Baedal Minjok (Baemin) plans to introduce a loan program worth 100 billion KRW within this year as one of the win-win measures to alleviate the burden on small business owners operating on its platform. On the 7th, Woowa Brothers, the operator of Baemin, announced a large-scale support policy for small business owners, including a 100 billion KRW guaranteed loan program, at an industry meeting held by the Ministry of Science and ICT to promote platform self-regulation.

Woowa Brothers decided to operate a 100 billion KRW guaranteed loan program by contributing credit guarantee funds to the Korea Credit Guarantee Fund. For this program, Woowa Brothers will contribute 3.5 billion KRW in guarantee funds to the Credit Guarantee Fund. The Credit Guarantee Fund will discuss related matters such as eligibility criteria and loan limits with restaurant and small business associations and finalize and implement the guaranteed loan program within the year. A Baemin official explained, "Through this, we plan to support self-employed individuals who are struggling amid high inflation and sluggish consumption."

Woowa Brothers also provides a 'Customer Management' feature to promote data cooperation with Baemin merchants. This feature enhances data provision to support stable sales growth and sales management for small business owners. The 'Customer Management' function, which analyzes customer data statistics, was introduced this month and is offered free of charge to help small business owners establish effective restaurant operation strategies. By the first half of next year, guide content will be provided to help middle-aged and older merchants use the data easily, and service improvements based on user feedback will be pursued.

There is also the 'Woahan Boss Care Fund' worth 20 billion KRW, which has been established and supported since last year. This fund provides up to 17 million KRW to cover medical and living expenses for small restaurant business owners facing financial difficulties.

Additional support measures for riders have also been implemented. Woowa Brothers’ subsidiary, Woohan Youth, established the 'Delivery Service Mutual Aid Association' together with the government and major delivery companies to expand the social safety net for riders. Woohan Youth contributed 4.7 billion KRW in capital to establish the mutual aid association. The association plans to launch services within the year, aiming to reduce riders’ insurance premium burdens and implement various projects such as educational programs to protect delivery workers. Woohan Youth also established the Baemin Rider School, a motorcycle safety education institution, and conducts its own safety practical training. Approximately 8,000 riders are expected to complete the training this year.

Lee Guk-hwan, CEO of Woowa Brothers, said, "As a platform connecting customers, merchants, and riders, we are exploring ways to connect and support the entire delivery service ecosystem. We aim to create an environment where everyone can grow and develop together," adding, "We will actively cooperate based on the foundation of self-regulation."