Value of contracts under Seoul's Freelancer Safe Payment service tops 800 million won

[The Financial News] Seoul's Safe Payment service, introduced to prevent freelancers from suffering losses due to nonpayment, is nearing 1,000 cumulative contracts. The contract value has also risen at least sevenfold from the end of last year, surpassing 800 million won, and the service is becoming a public platform supporting stable transactions for freelancers.
Seoul Metropolitan Government said on the 15th that, as of the 6th, the cumulative number of Safe Payment contracts on Seoul Freelancer On, a comprehensive support platform for freelancers, stood at 994, with a contract value of 811 million won. The contract value, which was 114 million won at the end of last year, had increased at least sevenfold, while membership grew about 2.6 times, from 1,183 to 3,085.
Freelancer Safe Payment works by having clients deposit contract payments in advance with a partner financial institution, which then pays the freelancer once the work is complete. Seoul Metropolitan Government first launched it as a pilot program in April last year, making it the first public institution to do so. Its key feature is that freelancers can check whether the payment has been deposited before starting work, reducing the risk of not being paid after completing a contract.
In January this year, the city launched Seoul Freelancer On, combining Safe Payment with career management, dispute counseling and information about work opportunities. Users can obtain certificates confirming their work history through the platform to verify their experience, and can also receive free expert advice on contract reviews, recovering unpaid receivables, labor issues, tax matters and copyright.
A key feature is that freelancers working on a project basis can use their transaction history as formal proof of their work experience. The platform also provides information about public-sector work opportunities from Seoul Metropolitan Government and its affiliated institutions.
The city has also introduced incentives to encourage client companies to participate. Companies using Safe Payment can access benefits including an increased credit guarantee ratio (from 85% to 90%), a lower guarantee fee rate (from 1.2% to 1.0% per year), and up to 800 million won in policy financing. Actual eligibility for support will be determined through a review by each institution.
Support for income gaps caused by childbirth and illness has also been expanded. This year, the childbirth leave benefit for freelancers whose spouses give birth was increased to a maximum of 15 days and 1.2 million won. Women freelancers who give birth receive a total of 2.4 million won, including government support. Those who take time off work due to illness or injury can receive up to 1,357,440 won per year through Seoul's hospitalization and living-expense support program. The aim is to strengthen the safety net for freelancers, who, because of the nature of their employment, often have difficulty accessing paid leave and similar benefits.
To mark the milestone of surpassing 3,000 members, Seoul Metropolitan Government will also hold an event from the 19th through November 20, awarding Seoul Love Gift Certificates and other prizes to 354 people, including new members and platform users.
Park Gyeong-hwan, director of Seoul Metropolitan Government's Civil Affairs and Labor Bureau, said, "We will promote use of the platform so freelancers can work with stability while receiving fair recognition for their work and experience."

[email protected] Lee Seol-young Reporter