The Seoul Metropolitan Government has decided to create a fund of 5 billion won to support small business owners struggling due to the economic recession and increase the small and medium-sized enterprises (SME) promotion fund by an additional 320 billion won. Additionally, it plans to support small business owners with the yellow umbrella fund, employment insurance premiums, and industrial accident insurance premiums.
On the 17th, the Seoul Metropolitan Government announced that it will launch the "Small Business Support Project" which contains this information.
The support policies for small business owners announced by Seoul that day are structured into five main areas: ▲ Establishment of a growth-type small business investment fund ▲ Expansion of SME promotion funds and interest rate cuts ▲ Reorganization of the Seoul Credit Guarantee Foundation ▲ Activation of the public delivery service "Seoul Delivery + Delivery Now" ▲ Support of three types of social safety nets for small business owners.
First, the Seoul Metropolitan Government has decided to establish a new "Small Business Growth Fund" that invests in promising small businesses with high growth potential. The fund will target sectors such as food service and services. The goal is to provide growth opportunities to small business owners who lack capital and networks. A fund of 5 billion won will be established based on the investment, and the investment and operation will be entrusted to private fund management companies.
In addition, the Seoul Metropolitan Government will increase the size of the SME promotion fund from the existing 2.1 trillion won to 2.42 trillion won, an increase of 320 billion won. Along with this, it plans to ease the financial burden on small business owners by simultaneously implementing interest rate cuts and repayment deferment measures.
The additional fund of 320 billion won will be allocated to "Management Stabilization Funds (1 billion won)" aimed at export companies, "Seoul Delivery Co-prosperity Funds (20 billion won)" providing low-interest loans to franchise owners participating in the Seoul Delivery + Delivery Now program, and "Safe Bank Account No. 2 (200 billion won)" which supports emergency funds through a negative balance method.
Measures that allow small business owners to respond to retirement, unemployment, and disasters were also announced. Following the existing support for the yellow umbrella fund and employment insurance premiums for self-employed individuals, industrial accident insurance will also be supported. The Seoul Metropolitan Government plans to provide a monthly hope incentive of 20,000 won to yellow umbrella fund members for one year, and to support 20% of the monthly insurance premium for employment insurance. Additionally, self-employed individuals who newly subscribe to industrial accident insurance will receive support of 30-50% of the monthly premium for up to five years.
Furthermore, starting in August, to enhance the public delivery service "Seoul Delivery + Delivery Now," the Seoul Metropolitan Government plans to issue 30 billion won worth of delivery-exclusive coupons and transform the Seoul Credit Guarantee Foundation into a "Comprehensive Support Center" to provide overall support for tax, labor, marketing, and digital transformation.
Lee Hae-sun, the Director of the Seoul Metropolitan Government's Labor and Employment Bureau, said, "We will actively promote not only financial support for small business owners but also comprehensive support for overall management and targeted support to ensure that they can feel substantial changes on the ground."