Incheon City Implements Support Programs for Small Business Owners with KB Financial Group’s Donation
[Incheon=Edaily reporter Lee Jong-il] Incheon City announced on the 24th that it will implement support programs for small business owners to alleviate the burden of childbirth and childcare. These programs include subsidies for substitute personnel and maternity pay for one-person businesses.
The initiative is being carried out following an agreement signed last December with KB Financial Group and the Korea Economic Association. The funding of 1 billion KRW has been donated by KB Financial Group.
When small businesses face a manpower shortage due to parental leave, the city will provide additional subsidies for substitute personnel. This program supplements the Ministry of Employment and Labor’s hiring support subsidy of 1.2 million KRW, with Incheon City adding up to 900,000 KRW. Specifically, eligible small business owners who have operated for more than six months in Incheon and have hired substitute personnel can receive 300,000 KRW per month for up to three months. Qualification is confirmed through the labor ministry’s subsidy program for hiring substitute personnel. The funding is limited to 215 individuals, considering the donation size from KB Financial Group.
The 300,000 KRW provided to substitute personnel may be included in their salary or given as an additional subsidy. For example, if a substitute personnel’s salary is 2 million KRW, the employer might add the city’s 300,000 KRW subsidy on top, or include it within a salary of 1.7 million KRW to reach the total of 2 million KRW. A city official stated that whether to include the 300,000 KRW in the salary is up to the employer’s discretion but believed it would benefit either the employer or the substitute personnel.
For one-person business owners, the city will offer maternity pay to reduce the income loss burden due to childbirth by the owner or their spouse. Currently, one-person business owners can receive 1.5 million KRW from the Ministry of Employment and Labor for childbirth not covered by employment insurance. Incheon City will provide an additional 900,000 KRW on top of this. The eligible applicants are small business owners who have operated in Incheon for more than six months and have registered a birth in Incheon after January of this year. The support is limited to 304 individuals, considering budget constraints.
Small business owners can apply for these support programs by visiting the Incheon Small Business Association or through email. Substitute personnel subsidy applications must be submitted within three months of the labor ministry’s subsidy decision date, and maternity pay applications within three months of the childbirth date. However, cases occurring before the announcement date (January 1 to February 20) can apply within three months of the announcement date. Applications will be reviewed and supported on a first-come, first-served basis until November, and the program will conclude once the budget is exhausted.
An Incheon City representative stated, “We will spare no effort to provide practical assistance to small business owners facing difficulties due to childbirth and childcare, enabling them to sustain stable management. We will also continue to pursue various policies to ensure citizens can work and live in a better environment.”