Vice Minister Lee Byung-kwon discusses introducing insurance for temporarily closed small businesses and expanding employment insurance premium support
Lee Byung-kwon, Vice Minister of the Ministry of SMEs and Startups,2 discussed 7in 8at a meeting held in Jung-gu, Seoul, introducing insurance for small businesses in the temporary-closure stage and expanding the small business employment insurance premium support program. The aim is to supplement the social safety net spanning temporary closure, business closure, and business relaunch.
Lee Byung-kwon, Vice Minister of the Ministry of SMEs and Startups,2 chaired 7in 8a policy meeting in Jung-gu, Seoul, on strengthening the social safety net for small businesses and discussed introducing insurance for small businesses in the temporary-closure stage and expanding the employment insurance premium support program. The discussion was intended to fill gaps in the safety net for small businesses as they move from temporary closure to business closure and a fresh start.
The meeting was attended by small business owners who had successfully relaunched their businesses, new subscribers to employment insurance for the self-employed, and small business owners who had experienced business closure. Insurance experts, private non-life insurers, and officials from the Small Business Market Promotion Corporation were also present.
A small business owner who successfully relaunched their business said at the meeting that premium support had enabled them to enroll in employment insurance, and that unemployment benefits had helped maintain their livelihood after closing the business and prepare for a relaunch. The expansion of the employment insurance premium support program was introduced as a case showing its impact on actual enrollment and access to benefits.
The main topics discussed at the meeting were expanding support for employment insurance premiums for small business owners and addressing policy gaps that arise during business suspension. Participants exchanged views, focusing on ways to mitigate income interruptions during periods of suspension.
The government explained that the discussion was one step in the process of laying the groundwork for a comprehensive safety net extending from business suspension to closure and a fresh start. The meeting included remarks on specific institutional design and the timing of implementation.
The meeting is drawing attention as part of the government's policy review process aimed at strengthening links between small business owners' livelihoods and business re-establishment. The purpose is to gather the views of relevant stakeholders and cases from the field to develop directions for institutional improvement.