The Seoul city government announced on the 16th that it will start to provide insurance premium support for the 'small business owners' industrial accident insurance.'
The insurance premium support aims to encourage small business owners to enroll by providing a maximum refund of 50% of the premium for five years.
The small business owners' industrial accident insurance is a special system that allows owners of business sites with fewer than 300 employees to receive industrial accident insurance on par with their workers. It is operated by the Korea Workers Compensation and Welfare Service.
However, there were very few small business owners enrolled in this insurance. Despite the high accident rate, they felt burdened by the premium that must be paid every month.
According to the Seoul city government, the accident rate for business sites with fewer than five regular employees in 2023 was about 1.7 times higher than the overall average. Among these, 82% were one-person businesses. Nevertheless, the enrollment rate of small business owners in Seoul, roughly 1.56 million people, was only 0.36% (5,622 people).
Accordingly, the Seoul city government plans to increase the enrollment rate of small business owners in industrial accident insurance through premium refund support.
According to the grade of the standard salary chosen by the enrollees, the Seoul city government will provide 50% for grades 1 to 4, 40% for grades 5 to 8, and 30% for grades 9 to 12.
For example, if a worker in the retail, food, or accommodation sector chooses the standard salary grade 1 (2,440,633 won per month), the monthly premium will be 19,525 won. With the support from the Seoul city government, the actual burden will be reduced to approximately 9,763 won per month.
Small business owners enrolled in industrial accident insurance can apply for eight types of benefits including medical expenses, drug expenses, surgery costs, and treatment costs, as well as compensation for suspension of work (70% of average wage during the suspension due to treatment).
Enrollment in the small business owners' industrial accident insurance can be done by visiting the Korea Workers Compensation and Welfare Service or via fax, mail, or online. Applications for the insurance premium support project can be made from today at one of the 25 branches of the Seoul Credit Guarantee Foundation or the self-employment support centers, including their official website.
Song Ho-jae, director of the Seoul city government's Labor and Human Resources Bureau, noted, "We will continue to strengthen the social safety net so that small business owners are not discouraged by uncertain futures."