From January 2026, self-employed small business owners in Korea will find it easier to access employment insurance under a new support scheme designed to reduce premium costs and strengthen income protection when businesses are forced to close.
 
The scheme lowers the financial threshold for joining employment insurance by refunding a substantial share of monthly premiums. Depending on contribution levels, enrolled business owners can receive refunds ranging from 50 percent to as much as 80 percent, with support continuing for up to five years. The aim is to make insurance coverage a more realistic option for smaller operators who have often maintained outside the system due to cost concerns.
 
Employment insurance for the self-employed is available to business owners with fewer than 50 employees. It provides temporary income support when a business shuts down because of declining sales or other economic pressures, offering unemployment benefits for up to seven months alongside access to vocational training subsidies and related allowances. By easing premium costs, the new scheme seeks to broaden participation in this safety net and the personal risk associated with business failure.
 
Insurance enrolment is also linked to wider business support measures. Business owners who are insured receive preferential terms when applying for policy loans, including a modest interest-rate reduction. They are also awarded additional points during document screening when applying for restart and re-entry programs designed to support recovery after closure.
 
Further enhancements are planned for 2026. The number of bonus points awarded during program evaluations will increase, and additional incentives based on the length of time a business owner has remained insured are under consideration. These measures are intended to encourage sustained participation rather than short-term enrolment.
 
Applications are handled online through streamlined channels. Business owners can enroll in employment insurance and apply for premium support at the same time via a single portal operated by the Korea Workers’ Compensation & Welfare Service. Those who are already enrolled in employment insurance can apply separately for premium support through the Small Business 24 (소상공인24) platform, which is operated by the Small Enterprise and Market Service.
 
The initiative forms part of a broader effort by the Ministry of SMEs and Startups to reinforce the social safety net for small business and prolonged economic uncertainty. By lowering entry barriers and connecting insurance participation with other support programs, the scheme aims to provide more stable pathways for recovery when business closure becomes unavoidable.
 
For further information, enquiries on employment insurance enrolment are handled by the Korea Workers’ Compensation & Welfare Service customer center (1588-0075), while questions related to premium support can be directed to the Small Enterprise and Market Service integrated call center (1533-0100).
 

For more news and updates on Korea’s SME and startup policies, follow the Ministry’s official LinkedIn page: Ministry of SMEs and Startups, Republic of Korea, 대한민국 중소벤처기업부