Establishing Grounds for Small Business Workers' Compensation Insurance Support
Regulation Adjustment for Implementing the Baeknyeon Small Business Owner System
The scope of support for industrial accident compensation insurance premiums for small business owners has been specified, and regulations for the implementation of the system, such as the designation and cancellation of designation of Baeknyeon Small Business Owners, have also been revised.
The Ministry of SMEs and Startups announced that the amendment to the Enforcement Decree of the "Act on the Protection and Support of Small Business Owners" was approved at the Cabinet meeting on the 2nd. This amendment is a follow-up measure to specify necessary matters delegated to the enforcement decree following the revision of the "Act on the Protection and Support of Small Business Owners" in January this year.
Through the amendment, the government has established a basis to support a portion of the industrial accident compensation insurance premiums for small business owners who are enrolled in industrial accident compensation insurance. Additionally, to support the sustainable growth of small business owners, a system to designate Baeknyeon Small Business Owners has been established.
The target for support of industrial accident insurance premiums includes small business owners who are enrolled in the 'Industrial Accident Insurance for Small and Medium Enterprise Employers' or those who newly enroll and wish to receive partial support for their industrial accident insurance premiums.
The 'Industrial Accident Insurance for Small and Medium Enterprise Employers' covers employers who employ fewer than 300 workers. Small business owners who enroll in this insurance can receive benefits such as medical care, leave, disability, and nursing care allowances in case of industrial accidents, similar to employees.
The Ministry of SMEs and Startups plans to consult with budget authorities to allocate funds for industrial accident insurance premiums in 2025, as the related laws and regulations come into effect.
The Baeknyeon Small Business Owner system is designed to support small business owners who have operated their businesses for a long time, contributed significantly to their local communities, and are expected to achieve continuous growth based on accumulated experience, by designating them as Baeknyeon Small Business Owners to enable sustainable growth for over a hundred years. Since 2018, the Ministry has promoted policies to designate and support 'Baeknyeon Gage' and 'Baeknyeon Sogongin,' but there were limitations in systematic support due to the lack of legal grounds.
With this amendment, new provisions have been established including ▲criteria for judging 'maintenance of identity' upon business succession ▲detailed requirements for designation and reasons for cancellation of Baeknyeon Small Business Owners ▲regulations on standards, methods, and procedures for awarding Baeknyeon Small Business Owners. Based on this, it is expected that the system will be revitalized by discovering and nurturing excellent Baeknyeon Small Business Owners and spreading successful models.
Oh Young-joo, Minister of SMEs and Startups, stated, “Baeknyeon Small Business Owners serve as role models of excellent small business owners with long traditions and growth potential. With this amendment to the Small Business Owners Act, more systematic support and institutional operation will be possible.” He added, “We will further strengthen the policy foundation to elevate Baeknyeon Small Business Owners as a representative brand of excellent small business owners and help them grow as key players in local commercial districts and globalization.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
