Dongjak-gu, Support for Small Business Owners 'Yellow Umbrella Hope Incentive Fund' Assistance

Up to 120,000 KRW Additional Incentive for Joining the Yellow Umbrella Mutual Aid

Dongjak-gu, Seoul (Mayor Park Il-ha) announced on the 13th that it will continue the ‘Yellow Umbrella Hope Incentive Support Project’ this year to stabilize the lives and establish a management foundation for small business owners in the district.

Park Il-ha, Mayor of Dongjak-gu, is delivering a greeting at the 2025 Dongjak-gu Small Business Association Regular General Meeting on the 27th of last month. Provided by Dongjak-gu.

The district has been implementing this project since 2022 to encourage small business owners to join the Yellow Umbrella Mutual Aid in preparation for management crises caused by old age, business closure, or death, and has supported 3,533 people with over 227 million KRW over three years.

According to the district, the support target this time is small business owners located in Dongjak-gu with annual sales of 300 million KRW or less who newly join the ‘Yellow Umbrella Mutual Aid’. Eligible applicants can receive the hope incentive by submitting an application form and supporting documents (sales for the past year) to the handling bank or the Korea Federation of SMEs within 30 days from the mutual aid subscription date. Retroactive support is also available for those who join after January 1, 2025.

The incentive is accumulated separately at 10,000 KRW per month for up to 120,000 KRW over one year when paying the mutual aid premium, with an annual compound interest rate applied (3% standard, 3.3% in case of business closure or death). When reasons such as old age, business closure, or death occur in the future, the incentive will be paid as a lump sum along with the mutual aid money. For more details, contact the Economic Policy Division of Dongjak-gu Office.

Meanwhile, this year the district is operating comprehensive support measures for small business owners, including the ‘Small and Medium Enterprise Development Fund’ that offers loans up to 2 billion KRW per company at a low interest rate of 1.0% per annum, the ‘Interest-Free Special Guarantee for Small Business Owners’ supported by a fund of 30 billion KRW, and the ‘Dongjak Love Gift Certificate,’ which is being issued intensively with a payback budget increased fivefold.

Mayor Park Il-ha said, “I hope the hope incentive will be like a refreshing rain for small business owners struggling in an era of high exchange rates and high prices,” and added, “We will continue to implement policies that serve as a strong support for small business owners and spare no effort to restore vitality to the local economy.”