Last year, the number of business closures exceeded 1 million, highlighting the ongoing difficulties faced by small business owners. We will work hard to establish a comprehensive 'safety net for business closures and revitalization' so that those who have closed their businesses can rise again.
Vice Minister Roh Yong-seok of the Ministry of SMEs and Startups said this on the 14th during the third meeting to strengthen 'recovery and safety nets for small businesses' held at the Seoul Employment and Welfare Plus Center in Jung-gu, Seoul. Attendees at the meeting included representatives from the Ministry of SMEs and Startups, the Ministry of Employment and Labor, which operates the National Job Support Program, the Small Enterprise and Market Service, as well as experts in supporting closed small businesses and revitalization.
On the same day, the Ministry of SMEs and Startups announced the 'Employment support enhancement plan for closed small businesses' to assist their re-challenges.
To assist the reemployment of closed small business owners, the Ministry of SMEs and Startups will implement customized support linked to the 'Hope Return Package' and the Ministry of Employment and Labor's 'National Job Support Program.' Participants in the Hope Return Package can receive vocational training after completing basic and advanced education, along with an additional allowance of up to 1.2 million won over six months, receiving 200,000 won per month on top of existing allowances.
Additionally, support will be provided for individuals over 50 years of age who have obtained certification or completed vocational training among closed small business owners to help them gain 'experience through career transition.' The ministry plans to discover certified individuals and those with practical experience during the Hope Return Package training program and link them with the Ministry of Labor's 'Middle-aged Career Support Project' to provide a participation allowance of up to 1.5 million won per month.
Employers who hire closed small business owners will also receive an incentive payment. Employers who hire closed small business owners who have completed basic and advanced training from the Hope Return Package and maintain employment for more than six months can receive up to 7.2 million won in employment promotion incentives for a year. The support funds will be distributed in installments at the 6-month and 12-month marks.
Incentives will also be provided to ease the debt burden for those who transition to wage workers. Currently, repayments for policy funds borrowed at the time of closure are postponed, but in the future, repayment periods will be extended upon successful employment. Furthermore, if individuals continue employment for more than a year and repay debts diligently, the interest rate will be reduced by 0.5 percentage points. To this end, the ministry plans to push for amendments to the 'Act on the Protection and Support of Small Businesses.'
Furthermore, the Ministry of SMEs and Startups announced improvements based on suggestions from the second relay meeting. In response to recommendations to introduce new technologies such as artificial intelligence (AI) for fire prevention and rapid response in traditional markets, it stated that starting from the 2026 project announcement, it would support the establishment of fire detection AI CCTV and spatial information-based firefighting dispatch systems through the safety management package for traditional markets. It also plans to amend the traditional market law to expand the scope of beneficiaries of fire insurance for traditional markets from existing traditional market merchants to include shopping districts and alley-shaped shopping areas.