The South Korea Financial Services Commission announced the rollout of KRW 14 billion in free insurance for small businesses and vulnerable groups across seven local government areas. The program comprises credit life insurance in six areas and locally tailored non-life coverage in all seven, with each area receiving KRW 2 billion in support. Around 1 million small business owners are expected to benefit. The one-year credit life policies repay up to KRW 10 million of an eligible small business borrower’s debt following death or diagnosis with specified serious illnesses. Policyholders may also receive an additional interest-rate discount of up to 0.3 percentage points on covered IBK loans or a 0.3 percentage-point reduction in the first-year guarantee fee for new Sunshine Loans. The non-life products address local risks including business interruption, fire and third-party liability, cyber fraud, workplace injuries, natural disasters and income lost when extreme heat stops construction work. Most eligible policyholders are enrolled automatically, although they must claim benefits directly and demonstrate continued eligibility. Most of the remaining products will launch during September, with Gyeongnam’s offerings beginning in October. The insurance industry plans to use the KRW 17.4 billion remaining in its KRW 30 billion mutual-support fund to develop further assistance for underserved groups, including older people and those living alone.

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