The Korea Federation of Small and Medium Enterprises said on the 4th that the number of new subscribers to the Yellow Umbrella in January rose 40.6% from a year earlier to 25,062, compared with 17,819 in the same month last year.
Yellow Umbrella is a public program run by KBIZ since 2007 to support livelihood stability and business recovery during management crises such as closure or old age. As of the end of January this year, the total number of registered subscribers surpassed 1.86 million.
By channel for new enrollments, financial institutions (12,394 cases), online (6,801), mutual aid consultants (5,393), and others (474) were recorded. The number of online subscribers increased 68.1% from January last year (4,047).
KBIZ is running a "Yellow Umbrella online enrollment promotion" through the end of this month. If a micro or small business owner newly enrolls through the Yellow Umbrella website or mobile application (app) by the 28th this year, the person can receive a coupon worth 50,000 won.
This year, Yellow Umbrella Hope Incentives supported by metropolitan and basic local governments total 29.7 billion won, up 12.5% from 26.4 billion won a year earlier. The Hope Incentive is a program in which each local government supports new subscribers with 10,000 to 30,000 won per month for up to 12 months to expand Yellow Umbrella enrollment among small merchants in the area.
Yellow Umbrella enrollment offers an income tax deduction benefit (up to 6 million won per year) and applies annual compound interest to the paid principal. The payout is protected by law from seizure.
A KBIZ official said, "Demand for a safety net is increasing amid an uncertain business environment, including an economic slowdown and weakened consumer sentiment, and interest in Yellow Umbrella among micro and small business owners is growing," adding, "The share of online enrollment is also steadily rising thanks to enrollment convenience and promotions."