Lower Commission Burden Through Activation of Public Delivery Service 'Ttaenggyeoyo'
Seoul Credit Guarantee Foundation to Provide Comprehensive Support Including Tax and Labor
The Seoul Metropolitan Government will now support industrial accident insurance premiums for small business owners, in addition to the existing support for the Yellow Umbrella Mutual Aid and employment insurance premiums. A new fund will also be established to invest in promising small businesses.
On the 17th, the city announced the launch of the second half of the year’s support for the "Small Business Support Project." In addition to financial assistance, the core of this policy is to strengthen the self-sufficiency of small businesses in areas such as management, investment, and the social safety net.
Seoul Mayor Oh Sehoon is explaining the Small Business Support Project and announcing support measures for small business owners at the Seoul City Hall briefing room in Jung-gu, Seoul. 2024.11.26 Photo by Jo Yongjun
First, the city will promote the public delivery service "Ttaenggyeoyo," which offers lower commission fees for small businesses. Starting this month, the city will sequentially introduce the "Seoul Delivery+ Price System," which provides up to a 30% discount, through agreements with chicken franchise chains. There are plans to expand this program to other sectors, such as pizza and hamburgers, in the future. The city will pilot its own delivery service in Jung-gu, Seoul, on the 30th of this month. Beginning next month, "Ttaenggyeoyo Delivery-Only Vouchers," which can be purchased at a 15% discount, will be issued with a total value of 30 billion won.
The city also plans to reduce gaps in the social safety net by supporting industrial accident insurance premiums for self-employed individuals. Previously, the city has provided support for severance pay (Yellow Umbrella Mutual Aid) and unemployment benefits (self-employed employment insurance premiums) for small business owners. The aim is to establish a foundation that enables the self-employed to respond to the three major social risks: retirement, unemployment, and accidents.
For small businesses with high growth potential, the city will go beyond basic livelihood support and create a foundation for investment. A new "Small Business Growth Fund" worth 5 billion won will be established, with the city’s investment serving as the base for private fund management companies to handle investment and operations. Small businesses in sectors closely related to daily life, such as food and service industries, will be eligible for investment, providing real growth opportunities for those lacking capital and networks. The fund will invest about 100 million won per business in approximately 50 small businesses, and will also offer comprehensive growth support programs, including loans, crowdfunding, and market development assistance.
The scale of the SME Development Fund will be increased by 320 billion won, from the existing 2.1 trillion won to 2.42 trillion won. The additional funds will be allocated as follows: 100 billion won for export companies to respond to U.S. tariff measures and ensure business stability; 20 billion won for the Seoul Delivery Mutual Growth Fund, which provides low-interest loans to Ttaenggyeoyo-affiliated merchants; and 200 billion won for the second phase of the "Safe Account" program, which provides emergency funds to the self-employed through a revolving credit account system.
The Seoul Credit Guarantee Foundation will be completely reorganized under the "Small Business General Hospital" model, with all branches renamed as "Comprehensive Support Centers." The focus will shift from financial support alone to comprehensive assistance, including tax, labor, marketing, and digital transformation. To this end, new integrated consultation counters will be established at each branch, allowing business owners to receive financial and management support in one place. Within the foundation, a new "Regulatory Innovation Department" will be created to continuously identify and address regulations and challenges faced by small businesses and reflect them in policy.
Lee Haeseon, Director of the Seoul City Bureau of Livelihood and Labor, stated, "We will actively work to ensure that small business owners can feel real changes on the ground by providing not only financial support but also integrated and targeted assistance for all aspects of business management."
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