Ministry of SMEs and Startups Discusses Strengthening Safety Net for Small Business Owners Facing Suspension or Closure: "Policy Insurance Should Be Considered"

30% Increase in Employment Insurance Enrollment Among the Self-Employed

Need for Policy Insurance to Address Income Gaps and Management Crises

The Ministry of SMEs and Startups held discussions with small business owners who have experienced business suspension or closure, addressing the need for employment insurance support and ways to enhance the social safety net.

Lee Byung-kwon, Second Vice Minister of the Ministry of SMEs and Startups, is taking notes of participants' opinions at the 'Small Business Social Safety Net Strengthening Policy Meeting' held on the 8th in Jung-gu, Seoul. Ministry of SMEs and Startups

On July 8, Byeongkwon Lee, Second Vice Minister of the Ministry of SMEs and Startups, hosted the "Policy Meeting on Strengthening the Social Safety Net for Small Business Owners" in Jung-gu, Seoul. The meeting focused on expanding the employment insurance premium support program for small business owners and strengthening the social safety net, particularly by addressing the policy gaps that occur during business suspension periods.

The meeting was attended by small business owners who successfully launched new ventures after receiving unemployment benefits, those who experienced business closure, insurance experts, representatives from private non-life insurance companies, and officials from the Small Enterprise and Market Service (SEMAS).

The small business owners expressed the need for employment insurance support programs and said that premium support from the government and other entities had helped them enroll in the system.

One small business owner who succeeded in starting a new business said, "Thanks to premium support, I was able to enroll in employment insurance, and the unemployment benefits were a great help in maintaining my livelihood and preparing for a new venture after closure." Another small business owner who recently enrolled in employment insurance also stated that support for insurance premiums from the national and local governments was a key factor in their decision to join.

The Small Enterprise and Market Service explained that since the government and all 17 provinces and metropolitan cities established a support system for employment insurance premiums for the self-employed, the number of new applicants for premium support has increased by about 30% compared to the previous year. The agency also emphasized the need to continue expanding support, as premium support has led to a rise in new employment insurance enrollments.

Participants also exchanged views on introducing policy insurance and other measures to supplement the social safety net during business suspension periods. One expert commented, "Employment insurance and the Yellow Umbrella Mutual Aid Fund are important systems for coping after business closure, but they have limitations in addressing income gaps and management crises that arise during business suspension."

A small business owner who had experienced closure said, "If there had been a system to help endure the business suspension period, it might not have led to closure," highlighting the need for support during the suspension phase.

A representative from a private insurance company pointed out, "While there are various policy insurance programs for agriculture and fisheries, there is still no policy insurance that systematically covers the risk of business suspension for small business owners. Since private insurance alone has its limits, it is necessary to consider introducing customized policy insurance for small business owners that complements both government policy insurance and private insurance."

Byeongkwon Lee, Second Vice Minister of the Ministry of SMEs and Startups, stated, "Through cooperation between the government and all 17 provinces and metropolitan cities, the foundation for supporting employment insurance premiums for the self-employed is expanding significantly. We will continue to expand this support and also address policy gaps during the business suspension phase, building a comprehensive social safety net for small business owners that spans from suspension to closure and new challenges."

This content was produced with the assistance of AI translation services.