Incheon Small Business Owners' Childbirth Allowance 2.4 Million Won... Incheon City-KB Financial, Support Agreement

300,000 KRW Support for Hiring Replacement Personnel During Parental Leave

Small business owners in Incheon are expected to receive a total of 2.4 million KRW in childbirth benefits starting next year.

On the 10th, Incheon City signed a "Business Agreement on Childbirth and Childcare Support for Small Business Owners in the Incheon Area" with KB Financial Group and the Korea Economic Association at City Hall. This agreement was established as a public-private cooperation measure to address the low birthrate issue.

The city plans to establish detailed support plans in consultation with related organizations, including the Small Business Federation, and will officially implement the project starting next year. To this end, KB Financial Group will sponsor 1 billion KRW in project funds, and the Korea Economic Association will provide HR and labor mentoring for small business owners.

At the 'Business Agreement Ceremony for Supporting Childbirth and Childcare for 410,000 Small Business Owners' held at Incheon City Hall on the 10th, Yoo Jeong-bok, Mayor of Incheon (fourth from the left), Yang Jong-hee, Chairman of KB Financial Group (fourth from the left), and Lee Sang-yoon, Head of the Sustainability Growth Division at the Korea Economic Association (third from the right), are posing for a commemorative photo. Provided by Incheon City

The main projects under this agreement include additional childbirth benefits for single-person small business owners and support for substitute personnel during parental leave.

Currently, the Ministry of Employment and Labor provides 1.5 million KRW in childbirth benefits to single-person small business owners, but this amount falls short of the 2.4 million KRW minimum childbirth benefit for employees. To supplement this, Incheon City will provide an additional 900,000 KRW to single-person small business owners, totaling 2.4 million KRW, and will also expand support when the spouse of a small business owner gives birth, helping both parents participate in childcare together.

Additionally, the Ministry of Employment and Labor currently supports 800,000 KRW per month for hiring substitute personnel during parental leave, and Incheon City will provide an additional monthly incentive of 300,000 KRW to substitute personnel. This is expected to help alleviate the difficulty in recruiting substitute workers.

The number of small business establishments in Incheon was 410,000 as of 2022, accounting for 95% of the total 430,000 businesses in the region.

Yoo Jeong-bok, Mayor of Incheon, said, "Most small business owners operate alone or in small-scale settings and face difficulties having to suspend economic activities during pregnancy and childbirth." He added, "Through this agreement, we expect it to be a meaningful opportunity for the public and private sectors to share social responsibility in solving the low birthrate problem."