Ministry of SMEs Supports Up to 80% of Employment Insurance Premiums for Small Business Owners

The Ministry of SMEs and Startups is stepping up efforts to strengthen the social safety net for small business owners.

On the 10th, the Ministry announced that it will expand the "Self-Employed Employment Insurance Premium Support Project" to promote employment insurance enrollment among small business owners.

Minister Oh Young-joo of the Ministry of SMEs and Startups purchased assorted jeon at Yongmun Market in Yongsan-gu, Seoul, after concluding an on-site meeting with small business owners and traditional market associations on the 3rd. Photo by Jo Yong-jun jun21@

This support policy provides partial coverage of insurance premiums for small business owners (employers) who have enrolled in employment insurance, reducing the financial burden of insurance premiums for up to five years. The support rate has been increased from 20-50% last year to 50-80% this year. The number of beneficiaries has also significantly increased from 25,000 to 40,000.

Small business owners who have been enrolled in employment insurance for more than one year and involuntarily close their businesses due to reasons such as six consecutive months of losses will be eligible to receive various social safety net benefits, including unemployment benefits and vocational training support.

The Ministry will begin accepting applications from the 11th, verify employment insurance enrollment status and small business owner status, and then provide premium support.

Kim Bong-deok, Head of the Small Business COVID-19 Recovery Support Team at the Ministry, stated, "Employment insurance can serve as a reliable support during management crises for small business owners who lack a social safety net after closure," adding, "This year, by expanding the employment insurance premium support rate up to 80%, we will further promote employment insurance enrollment among small business owners and strive to enhance their social safety net."