Seoul to Reimburse Up to 50% of Industrial Accident Insurance Premiums for Small Business Owners

Only 0.36% of Seoul's Small Business Owners Enrolled in Industrial Accident Insurance
City to Provide 30% to 50% Reimbursement of Insurance Premiums

The Seoul Metropolitan Government will provide a reimbursement of up to 50% of industrial accident insurance premiums to small business owners who are both employers and workers, in order to reduce their financial burden and encourage enrollment.

On June 16, the city announced the launch of this support program for "Industrial Accident Insurance for Small Business Owners." This insurance, operated by the Korea Workers' Compensation and Welfare Service, is a special system that allows business owners of workplaces with fewer than 300 employees to receive the same industrial accident insurance benefits as their workers.

In 2023, the accident rate at workplaces with fewer than five regular employees was about 1.7 times higher than the overall average, and 82% of these cases occurred at single-person businesses. In addition, among approximately 1.56 million small business owners in Seoul, only 5,622 are enrolled in industrial accident insurance, representing a coverage rate of just 0.36%.

Accordingly, Seoul plans to encourage hesitant small business owners to enroll in industrial accident insurance by providing premium reimbursement support. Depending on the standard wage grade selected by the enrollee, the city will reimburse 30% to 50% of the paid insurance premiums for up to five years. Specifically, 50% will be reimbursed for grades 1 to 4, 40% for grades 5 to 8, and 30% for grades 9 to 12.

Small business owners enrolled in industrial accident insurance can apply for eight types of insurance benefits in the event of a work-related accident, including medical care benefits that cover examination, surgery, and treatment costs, as well as temporary disability benefits.

This new insurance premium support is Seoul's third social safety net policy, following the "Hope Incentive for Yellow Umbrella Mutual Aid" and "Self-Employed Employment Insurance Premium Support" initiatives. The city aims to complete its three-pronged social safety net for small business owners and establish a comprehensive protection system to alleviate their livelihood insecurity.

Enrollment in the Industrial Accident Insurance for Small Business Owners is available at any time by visiting the Korea Workers' Compensation and Welfare Service, or via fax, mail, or online. Applications for the premium support program can be submitted starting June 16 at any of the 25 branches of the Seoul Credit Guarantee Foundation, through the Self-Employed Support Center website, or by visiting the center in person.

Song Hojae, Director of the Seoul Bureau of Civil Affairs and Labor, stated, "The goal of Seoul's policy is to ensure that working business owners can prepare for work-related accidents just like employees." He added, "We will continue to expand the social safety net for small business owners as a strong safety mechanism, so that they can overcome uncertainties such as retirement, business closure, and accidents, and continue to grow without fear."