The Seoul Metropolitan Government is officially launching the second half support of the ‘Small Business Support Project’ to assist small business owners suffering from economic downturn and external economic uncertainty. In addition to expanding financial support, they plan to implement a comprehensive strategy that includes management, investment, and social safety net initiatives.
In the second half of the year, the focus will be on activating the public delivery app ‘Seoul Delivery+Order Now,’ expanding the three types of social safety nets, establishing a growth-oriented small business investment fund, expanding small business development funds, and reorganizing the Seoul Credit Guarantee Foundation. These five policies will be prioritized.
‘Seoul Delivery+Order Now’ will implement the ‘Seoul Delivery+Price System,’ offering up to 30% discount benefits in collaboration with chicken franchises starting in July. Their own delivery service ‘Order Delivery’ will begin trial operations in the Jung-gu district from the 30th of this month. From August, they will issue a 300 billion won worth of 15% discounted ‘Order Now Delivery Voucher.’
The social safety net has established three systems: the severance payment ‘Yellow Umbrella Mutual Aid,’ unemployment benefits ‘Self-employed Employment Insurance,’ and industrial accident insurance included in the ‘Self-employed Safety 3 Types’ system. Self-employed individuals newly subscribing to industrial accident insurance can receive 30~50% support for their monthly insurance premiums for up to five years.
A new fund called the ‘Small Business Growth Fund’ will also be established for small businesses with high growth potential. Based on municipal investment funds, they will invest 100 million won each in a total of 50 companies, accompanied by comprehensive support such as loans and market development.
The small business development fund will secure an additional 320 billion won, expanding the total to 2.42 trillion won. Of this, 1 trillion won will be allocated to export companies’ management stabilization funds in response to U.S. tariff measures, 200 billion won to the ‘Seoul Delivery Coexistence Fund,’ and 2 trillion won to the ‘Safety Account No. 2.’
‘Safety Account No. 2’ targets small businesses with over a year of business experience, providing up to 10 million won in support. Especially, for young entrepreneurs under 30 and senior entrepreneurs over 60, the examination requirements are eased. The facility fund interest rate will be reduced from 3.3% to 2.8%, and the principal repayment grace period will be extended until the end of the year.
The Seoul Credit Guarantee Foundation will reorganize all branches into ‘Comprehensive Support Centers’ to provide comprehensive support including tax, labor, marketing, and digital transformation. A new ‘Comprehensive Consultation Window’ will be established to allow for simultaneous financial and management consultations in one visit.
Furthermore, a ‘Regulatory Innovation Department’ will be established to identify small business difficulties and reflect them in institutional improvements. In May, they addressed the blind spot in guarantees by relaxing the limit on guarantees for companies from other regions and simplifying contract documentation.
Lee Haeseon, head of Seoul’s Public Welfare and Labor Bureau, stated, “We will continue to actively promote comprehensive support for management along with financial support in the second half of the year, allowing small businesses to experience real change.”