Gwangju City will implement a 'Free Insurance Program for Small Business Owners' starting September 9 to support the stability of small businesses.
This initiative is part of a project selected by the Financial Services Commission in February, which involves the former Gwangju City and Jeollanam-do.
The program will operate with a total budget of 4 billion won over the next three years.
It consists of three types of insurance: Recovery Loan Assurance Insurance, Young Small Business Owner Assurance Insurance, and Business Liability Insurance.
Each insurance type is tailored to the characteristics of small businesses in the Gwangju and Jeollanam-do regions.
The Recovery Loan Assurance Insurance targets small business owners aged 20 to 65 in Gwangju and Jeollanam-do who have loans exceeding 10 million won.
If a small business owner passes away or is diagnosed with cancer, cerebral hemorrhage, acute myocardial infarction, or severe disability, the insurance company will directly repay up to 10 million won of the loan to the financial institution.
Multiple compensations are possible regardless of other insurance coverage, and enrollment is free.
Applications can be submitted individually starting September 9 through the Gwangju Economic Promotion Foundation and the Jeollanam-do Small Business Job Economic Promotion Agency's websites.
Details on eligibility and application requirements can be found on the websites.
A total of 10,000 participants will be recruited, with 5,000 from Gwangju and 5,000 from Jeollanam-do, on a first-come, first-served basis. The program may close early if the budget is exhausted.
The Young Small Business Owner Assurance Insurance is aimed at young small business owners aged 15 to 49 operating in Jeollanam-do.
In the event of death or severe disability, 3 million won will be provided, along with compensation of 200,000 to 400,000 won for work-related injuries, and a 100,000 won congratulatory payment for childbirth.
The Business Liability Insurance is for small businesses in Gwangju with annual sales of less than 3 billion won.
This insurance covers legal liability for damages to others resulting from accidental incidents at the business premises, with compensation of up to 20 million won per person and 30 million won per incident for personal injury, and up to 1.5 million won for property damage.
Small businesses eligible for the Young Small Business Owner Assurance Insurance and Business Liability Insurance will be automatically enrolled without a separate application process. Claims can be made within three years from the date of the incident.
* This article has been translated by AI.
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