First in the Nation: Business Suspension Loss Compensation for Small Business Owners
KB Financial Group Contributes 1 Billion KRW... Starts on the 17th
Up to 50,000 KRW Per Day, for 10 Days During Suspension
The Seoul Metropolitan Government will support various fixed costs such as rent for small business owners preparing for pregnancy and childbirth. This initiative will be carried out in collaboration with KB Financial Group and the Korea Economic Association, providing financial support during the period of business suspension.
On the 13th, the Seoul Metropolitan Government and the Seoul Foundation of Women and Family announced that starting from the 17th, they will officially launch the "Business Suspension Loss Compensation Insurance Support Project," which supports various fixed costs such as rent and utility bills incurred during the suspension period caused by pregnancy and childbirth for small business owners who have decided to have and raise children.
This project is part of the "Customized Childbirth and Parenting Triple Package" jointly promoted by the Seoul Metropolitan Government, KB Financial Group, and the Korea Economic Association for small business owners. In August last year, Seoul announced support measures for small business owners, who were overlooked in childbirth and childcare support policies, as part of the low birthrate countermeasure "Birth Support Seoul Project."
The suspension support compensates small business owners who have subscribed to the "Business Suspension Loss Compensation Insurance" with up to 50,000 KRW per day and 500,000 KRW for 10 days of fixed costs during the suspension period caused by hospitalization due to pregnancy and childbirth (including the postpartum care center period). Any small business owner in Seoul is automatically enrolled in the "Business Suspension Loss Compensation Insurance" free of charge, so no separate subscription procedure is required.
Small business owners in Seoul can minimize their economic burden by receiving support for various fixed costs such as rent and utility bills incurred during the suspension period caused by the insured person (business owner) or the insured person's spouse's pregnancy, childbirth, and postpartum hospitalization during the insurance period. All small business owners in Seoul are eligible for free enrollment, and support is provided if the main business location on both the resident registration card and business registration certificate is in Seoul and the business has been operating for more than one year as of the insurance claim date.
The main coverage includes payment of fixed losses such as rent and utility bills for the number of suspension days if the business owner can prove suspension during hospitalization for treatment or delivery after pregnancy and childbirth, or during the use of a postpartum care center after childbirth.
Proof of suspension can be confirmed through card approval details issued by the Korea Credit Finance Association to verify lost sales or by submitting a suspension certificate from the National Tax Service. To receive insurance benefits, the small business owner who gave birth (or the spouse of the small business owner) must directly claim the insurance benefits from the insurance company after the suspension. The following supporting documents must be submitted to verify eligibility for insurance support. The application period is within three years after the suspension occurs.
Kim Seon-soon, Director of the Seoul Metropolitan Government’s Women and Family Office, said, "As small business owners and self-employed individuals face growing anxiety about livelihood interruption when they become pregnant and give birth, Seoul Metropolitan Government and KB Financial Group have decided to support loss costs such as rent to alleviate concerns caused by business suspension." She added, "We will continue to expand low birthrate countermeasures that small business owners can feel by cooperating with various private companies."
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