Jeonbuk Province Expands Support for 'Yellow Umbrella' New Enrollment Incentive

Monthly Incentive for New Yellow Umbrella Enrollments to Double from 10,000 Won to 20,000 Won Starting in July

Starting in July, Jeonbuk Special Self-Governing Province will increase the monthly incentive for new enrollments in the 'Yellow Umbrella' program from the current 10,000 won to 20,000 won.

According to the province on May 13, the 'Yellow Umbrella' is a public system that allows small business owners to accumulate monthly contributions ranging from 50,000 won to 1 million won, helping them prepare for livelihood risks such as business closure, old age, or retirement.

Jeonbuk Provincial Government Office view. Provided by Jeonbuk Province

Subscribers can receive their accumulated contributions as a lump-sum payment if a qualifying event such as business closure occurs. The accumulated amount earns quarterly compound interest at the annual rate announced by the Korea Federation of SMEs.

In particular, subscribers are eligible for an annual income tax deduction of up to 6 million won, and their benefits are protected from seizure, transfer, or collateralization, ensuring a minimum level of security for their livelihood. Within the range of their contributions, general loans or interest-free loans (for medical, disaster, rehabilitation, bankruptcy, etc.) are also available.

Since 2019, Jeonbuk Province has supported the Yellow Umbrella enrollment incentive for up to 12 months, thereby providing institutional support for establishing a social safety net for small business owners.

Kim Intae, Director of Corporate Attraction Support, stated, "The expansion of the Yellow Umbrella new enrollment incentive is more than just increased support; it is intended as a meaningful gesture of encouragement and strength for small business owners enduring difficult times. We will continue to implement tailored policies to enhance business stability and the possibility of recovery for small business owners."

Meanwhile, enrollment in the Yellow Umbrella program is possible through the call center, on-site visits by program counselors, visits to the Jeonbuk Regional Headquarters of the Korea Federation of SMEs, or via the official website.