The Korea Federation of Small and Medium Enterprises announced on the 24th that it would quickly support small and medium-sized enterprises and small business owners affected by the heavy rain in areas including Gyeonggi, Chungcheongnam, Jeollanam, and Gyeongsangnam.
Small enterprises and small business owners who are members of the Yellow Umbrella in special disaster areas such as Damyang in Jeollanam and Sancheong and Hapcheon in Gyeongsangnam can receive disaster-related support. By submitting a damage confirmation certificate issued by the local government or a disaster small business confirmation certificate, they can receive compensation or interest-free loans up to a maximum of 20 million won.
The Yellow Umbrella is a system that provides benefits such as compensation payments, income deductions, and welfare services so that small enterprises and small business owners can achieve stability in their lives and opportunities for business restart amid threats to their livelihoods such as business closure, aging, and disasters.
Members of the small business compensation fund will have their loan interest rates reduced by 2% when applying for loans to affected corporations. The small business compensation fund offers loans to prevent small business bankruptcies and stabilize management.
Members of the small business disaster compensation for natural disasters such as flooding and earthquakes will receive actual compensation for losses incurred to their stores and factories due to heavy rain and flooding when they apply.
Kim Gi-moon, chairman of the Korea Federation of Small and Medium Enterprises, said, "It is unfortunate that small and medium-sized enterprises and small business owners, who have diligently worked in difficult circumstances due to the economic downturn, have suffered significant damage from the recent heavy rain," and added, "I hope this measure will help normalize the affected corporations to some extent."