The Korea Federation of Small and Medium Enterprises announced on the 1st that it will quickly support small and medium-sized enterprises and small business owners affected by wildfires that occurred simultaneously in Ulsan, Gyeongbuk, and Gyeongnam.
In particular, small businesses and small business owners who are members of the yellow umbrella located in the specially designated disaster areas of Sancheong County in Gyeongnam, Uljin County in Ulsan, Uiseong County in Gyeongbuk, Hadong County in Gyeongnam, Andong City in Gyeongbuk, Cheongsong County in Gyeongbuk, Yeongyang County in Gyeongbuk, and Yeongdeok County in Gyeongbuk can receive compensation for social disasters by submitting a disaster fact verification certificate or a disaster small and medium-sized enterprise verification certificate issued by local governments.
In addition, yellow umbrella members who have received a disaster small and medium-sized enterprise verification certificate after suffering damage from the wildfires can utilize interest-free loans for deposit payments within a limit of 20 million won and can also defer deposit payments for six months.
For members of the small and medium-sized enterprises mutual aid fund, the payment of contributions will be deferred for six months upon application, and the loan interest rate will be reduced by 2 percentage points for affected corporations.
The yellow umbrella is a system that provides benefits such as payment of mutual aid (with interest, prohibition of seizure), income deductions, and welfare services so that small businesses and small business owners can gain stability in their livelihoods and business restart opportunities from threats like bankruptcy, old age, and disasters. The small and medium-sized enterprises mutual aid fund is a system that supports loans to prevent bankruptcy and stabilize the management of small and medium-sized enterprises.
Kim Gi-moon, the president of the Korea Federation of Small and Medium Enterprises, noted, "It is more regrettable that small and medium-sized enterprises and small business owners who have quietly continued their livelihoods in difficult situations such as economic recession are suffering damage from this wildfire," and said, "I hope this measure will be of some help to normalize the affected corporations."