Jeju Small Business Owners’ ‘Loan Safety-Net Insurance’ Launched... Up to 10 Million Won in Loan Repayment for Death and Three Major Diseases

【Financial News Jeju=Reporter Yong-bok Jeong】 A financial safety net has been launched in Jeju for small business owners who operate businesses there. If they die unexpectedly or are diagnosed with cancer, cerebral hemorrhage, or acute myocardial infarction, insurance benefits will be used to repay up to 10 million won of their loans from financial institutions. Jeju Special Self-Governing Province will cover the entire premium, so enrollees will incur no cost.
According to Jeju Special Self-Governing Province on the 6th, enrollment in the ‘Small Business Owners’ Livelihood Recovery Loan Safety-Net Insurance’ began on the 1st. The program will operate through December 2029.
Eligible applicants are small business owners aged 20 to 65 by insurance age who have a business in Jeju and have taken out a loan from a financial institution in the province.
The main policy covers death, general cancer, cerebral hemorrhage, and acute myocardial infarction. If an insured event occurs, up to 10 million won will be paid to the lending financial institution, within the loan amount, to repay the debt.
The coverage amount is at least 1 million won. General cancer has a 30-day waiting period after enrollment, while cerebral hemorrhage, acute myocardial infarction, and death have no separate waiting period. Supplementary coverage for everyday risks, with benefits paid directly to small business owners, is also available.
A payment of 200,000 won will be made for a diagnosis of heat-related illness or cold-related illness, respectively. Victims of violent crime may receive consolation payments ranging from 1 million to 10 million won, depending on the type of crime. Unlike benefits under the main policy, supplementary benefits are paid directly to small business owners.
Jeju Special Self-Governing Province will cover the entire premium for enrollees. Annual premiums vary by age and gender. At age 20, they are 6,104 won for men and 6,246 won for women; at age 40, 31,946 won for men and 33,912 won for women; and at age 60, 141,039 won for men and 75,734 won for women.
At the maximum enrollment age of 65, the premiums are 200,958 won for men and 96,553 won for women. Enrollees do not pay these premiums.
The insurance period is one year for each enrollee. The policy will not be renewed automatically after expiration; instead, applicants must reapply. The aim is to give new small business owners an opportunity to enroll each year rather than allowing a particular group of enrollees to continuously receive the benefits.
Applications will be handled remotely. Applicants can access the QR code on promotional materials distributed by Jeju Special Self-Governing Province and the Jeju Economic and Trade Promotion Agency, or visit the online enrollment page, then complete identity verification and enter their information. During the enrollment process, applicants can also check the premium, coverage details, insurance benefit payment criteria, and restrictions on payments.
The program is a form of mutual-benefit insurance jointly promoted by the financial and insurance sectors and local governments. It focuses on reducing the risk that outstanding loans will become an additional burden on families or businesses when small business owners are unable to continue their economic activities because of a serious illness or death.
In Jeju, supplementary coverage also includes heat-related illness, cold-related illness, and violent-crime victimization, adding protection against everyday risks that may occur at business sites.
Kang Ae-sook, Director of the Economic Vitality Bureau of Jeju Special Self-Governing Province, said, "This program was created to ease the loan repayment burden on small business owners facing difficulties because of an unexpected death or serious illness." She added, "Because it provides coverage for loan repayment and everyday risks without any premium burden, I hope many small business owners will make use of it."


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