Gyeongsangbuk-do Provincial Government launches mutual growth insurance premiums, helps small businesses cover business interruption losses and loan repayments

[Financial News, Andong = Kim Jang-wook] Gyeongsangbuk-do Provincial Government will help small businesses cover business interruption losses and repay loans.
Gyeongsangbuk-do Provincial Government will fully launch its Small Business Mutual Growth Insurance Support Project on Sept. 1 to strengthen the social safety net for local small businesses struggling with high prices and high interest rates.
The project is a public contest program carried out in cooperation with the insurance industry and local governments. From September through August 2029, it will support small businesses' insurance enrollment and coverage under annual implementation plans over a three-year period.
The total project budget is 2.5 billion won, and the insurance premiums paid by small businesses will be fully covered, allowing them to enroll for free.
Lee Gyeong-gon, director of the Bureau of Economy and Trade, said, "We hope this will serve as a strong social safety net for small businesses in the province against unexpected illness, injury and debt risks." He added, "We will continue to energize the local economy through practical support measures that small businesses can actually feel on the ground."
The Small Business Mutual Growth Insurance consists of two products: Business Interruption Loss Compensation Insurance and Loan Protection Insurance.
Business Interruption Loss Compensation Insurance covers fixed costs such as rent and utilities incurred while a small business owner who has been registered in the province and has operated for at least one year is unable to run the business because of hospitalization due to illness or injury. The first two days of hospitalization are excluded from coverage, and from the third day onward, the policy provides up to 50,000 won per day for a maximum of 10 days.
Small business owners who have been operating for less than one year as of Sept. 1 can also be included in the coverage if they reach at least one year of operation by Aug. 31, 2027, the end of the insurance coverage period. New small businesses can therefore also benefit from the program.
In particular, Business Interruption Loss Compensation Insurance is automatically applied to small businesses that have been operating in the province for at least one year, without any separate enrollment procedure.
Loan Protection Insurance is for small business owners aged 20 to 65 who are using Gyeongbuk Credit Guarantee Foundation's 2025 Burteam Finance program. If the insured dies, is diagnosed with one of the three major diseases, including cancer, cerebral hemorrhage or acute myocardial infarction, or develops a severe disability, the policy covers loan repayment up to a maximum of 10 million won.
Unlike Business Interruption Loss Compensation Insurance, this policy requires a separate enrollment process. After third-party information sharing consent is completed through the Gyeongbuk Credit Guarantee Foundation, the insurer sends the eligible small business owner a link for identity verification and consent. The applicant then submits consent for information sharing, identity verification and pre-contract disclosure obligations. Final enrollment is completed after the insurer's review.

[email protected] Kim Jang-wook Reporter