"From Phishing Losses to Loan Repayment"... North Chungcheong Province Launches One-Stop Mutual Growth Insurance for Self-Employed Workers

[Financial News, Cheongju = Reporter Kim Won-joon] North Chungcheong Province Government will fully launch the "North Chungcheong Province Small Business Mutual Growth Insurance Support Project" on the 1st to protect local small business owners facing management crises caused by unexpected illness, death, and cyber financial crimes.
 The project was pushed forward after North Chungcheong Province Government was selected in February as the final winner of the Financial Services Commission (FSC)-led "Insurance Industry–Local Government Mutual Growth Insurance Support Project" contest. A total of 2.1 billion won will be invested over the next three years, including 1.8 billion won from a donation by the Korea Life Insurance Association and 300 million won from the provincial budget. Insurance premiums will be fully covered, so small business owners will not bear any additional cost.
 The mutual growth insurance program consists of two products: "Loan Protection Insurance," which eases the burden of debt repayment, and "Cyber Financial Protection Insurance," which compensates losses from financial crimes. Loan Protection Insurance is available to small business owners in the province who operate a business site there and are using loans from financial institutions, excluding private lenders. If a policyholder dies or is diagnosed with one of the three major critical illnesses — cancer, cerebral hemorrhage, or acute myocardial infarction — the outstanding loan balance will be repaid directly as insurance benefits, from a minimum of 1 million won to a maximum of 10 million won.
 Cyber Financial Protection Insurance is automatically provided without a separate application to small business owners with business sites in the region. In the event of phishing, hacking, or unauthorized payment losses, it covers up to 3 million won, within 80% of the damage amount. For online fraud losses, it covers up to 1 million won. Applications can be submitted through the dedicated center or by scanning the QR code in the notice.
 The policy, jointly prepared by local governments and the financial sector, is being seen as a targeted welfare model designed to prevent a chain of bankruptcies among small-scale self-employed workers amid high interest rates and high inflation. In particular, for one-person businesses and small-scale merchants, the owner’s deteriorating health or damage from cybercrime often leads directly to closure and credit delinquency, so the new coverage system is expected to serve as a practical safeguard for business operations.
 Ryu Seok-yeol, head of the small business support team at North Chungcheong Province Government, said, "Mutual growth insurance is a strong safety net for livelihoods, designed to ease management risks for small business owners exposed to sudden crises," adding, "We will continue to pursue a range of support measures so that local small business owners can carry on with their livelihoods with peace of mind."
[email protected] Kim Won-joon Reporter