The insurance sector, in collaboration with seven local governments, is set to roll out free mutual insurance for local small businesses and vulnerable groups. The total project budget is 14 billion won, benefiting approximately 1 million people.
The Financial Services Commission announced on September 1 that the insurance sector will operate mutual insurance products in Gyeongnam, Gyeongbuk, Gwangju, Jeonnam, Jeonbuk, Jeju, and Chungbuk.
The life insurance sector will offer credit life insurance in six regions, excluding Jeonbuk. If a policyholder passes away or is diagnosed with general cancer, cerebral hemorrhage, or acute myocardial infarction, they can repay loans with insurance payouts of up to 10 million won. The coverage period lasts for one year after enrollment.
Policyholders who receive loans covered by this insurance from IBK Industrial Bank will benefit from an additional preferential interest rate of up to 0.3 percentage points. New borrowers under the Sunshine Loan program from the Korea Inclusive Finance Agency will see a 0.3 percentage point reduction in guarantee fees during the first year.
The non-life insurance sector will provide products tailored to regional characteristics. In Gyeongbuk, up to 50,000 won per day will be provided for business interruption due to hospitalization, while Gyeongnam will cover fire liability for small restaurants up to 100 million won. Gwangju will offer liability coverage during business operations, and Chungbuk will compensate for phishing and smishing damages. Jeonnam, Jeonbuk, and Jeju will each operate products for young small business owners, comprehensive insurance for small businesses, and income loss protection due to heatwaves, respectively.
Most non-life insurance products will automatically enroll eligible individuals without separate applications. The Financial Services Commission plans to utilize the remaining mutual fund resources of 17.4 billion won to support additional initiatives for elderly individuals living alone and other vulnerable groups.
* This article has been translated by AI.
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