Additional Support for Small Business Owners in Incheon
Childbirth and Substitute Labor Benefits Supplement Government Aid
Expanded Assistance for Sole Proprietors and Their Spouses
Small business owners operating in Incheon will receive additional substitute labor support funds and childbirth benefits apart from government support.
Incheon City announced on the 24th that it will officially implement a substitute labor and childbirth benefit support project to alleviate the childbirth and childcare burdens of small business owners in the region. This project is based on the 'Incheon Small Business Owner Childbirth and Childcare Support Business Agreement' signed in December last year between Incheon City, KB Financial Group, and the Korea Economic Association, with KB Financial Group donating 1 billion KRW to establish the financial foundation.
The city will first provide childbirth benefits to sole proprietors to reduce the income loss burden caused by childbirth of themselves or their spouses. Currently, the Ministry of Employment and Labor supports sole proprietors with 1.5 million KRW as childbirth benefits, but this amount is below the minimum childbirth benefit of 2.4 million KRW for employees.
To supplement this, Incheon City will provide an additional 900,000 KRW to sole proprietors, totaling 2.4 million KRW. Support will also be expanded when the spouse of a small business owner gives birth, helping both parents participate in childcare together. Eligible recipients are small business owners who have resided in Incheon for more than six months and operate a business, and who have registered the birth of a child born after January of this year in Incheon.
Incheon Mayor Yoo Jeong-bok, KB Financial Group Chairman Yang Jong-hee (fourth from the left), and Lee Sang-yoon, Head of the Sustainability Growth Division at the Korea Economic Association (third from the right), are taking a commemorative photo with officials after signing a business agreement to support childbirth and childcare for 410,000 small business owners. 2024.12.10 Provided by Incheon City
Also, for hiring substitute workers during current parental leave, the Ministry of Employment and Labor supports 1.2 million KRW per month, and Incheon City will additionally provide an incentive of 300,000 KRW per month for up to three months to substitute workers. The city expects this 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 companies in the region. Most small business owners operate alone or in small-scale settings and face difficulties having to suspend economic activities during pregnancy and childbirth.
An official from Incheon City stated, "This project to support childbirth and childcare for small business owners was promoted in the spirit of sharing social responsibility between the public and private sectors to solve the low birthrate issue," adding, "We hope small business owners receive practical help and continue stable management."
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