Introducing the "Yellow Umbrella" Union for small business owners
I’d like to introduce the “Yellow Umbrella” Union for SME owners. It's basically a government-sponsored rainy-day fund for owners of small- and medium-sized businesses in Korea. Under this program, sole proprietors or their representatives can deposit monthly installments into their own account within this Union.
Unfortunately, this Union is not for corporations, but only applies to sole proprietors and their representatives based on the Article 115 of the SME Union Law, which was created to protect entrepreneurs from retirement or bankruptcy, or sudden death.
This is a kind of government-sponsored social security system to prevent sole proprietors from filing Chapter 11 bankruptcy and dragging their families into poverty.
For of the above purpose, there is a one million won limit to the amount one can invest each month. Joining the program, however, offers many advantages:
This system is guaranteed by the government
This installment account is prohibited by law from being held by any liens or provisional attachments.
This installment is tax deductible up to 3 million won per year, saving you personal and corporate income tax as well.
This account gains compound interest, so you can withdraw a lump sum of money should you need it if your business fails.
Injury and accident insurance of around 30 million won is provided free for the first 2 years.
I've found that most Korean sole proprietors don't know about this system, but now that you know, you expat sole proprietors and CEOs can join this program as well.
If you have any questions, or to see if you're eligible, please contact me through my e-mail address: joezoh@gmail.com.
