The Korea Federation of SMEs (KBIZ) and Lotte Card have joined forces to expand enrollment in the Noh-ran Umbrella mutual aid program among small businesses and small business owners. Lotte Card customers will now be able to sign up for the program through the card issuer's mobile app or by text message.
KBIZ said on the 3rd that it signed a memorandum of understanding with Lotte Card on the 2nd at its headquarters in Yeouido, Seoul, covering the Noh-ran Umbrella mutual aid program to build a social safety net for small businesses and small business owners.
Under the agreement, the two sides will build an online application process that lets Lotte Card customers enroll in the program easily and will pursue joint marketing. Customers will be able to sign up through an enrollment link sent via the card app or by text. Lotte Card merchants who have not yet enrolled will also receive tailored guidance by phone from dedicated counselors.
Noh-ran Umbrella is a mutual aid program KBIZ has run since 2007 to support the livelihoods and business recovery of small businesses and small business owners facing difficulties such as closure or old age. Cumulative enrollment topped 3.41 million as of September this year.
Members qualify for income deductions of up to 6 million won a year, and their principal payments earn annually compounded interest. Payouts are legally protected from seizure, allowing them to serve as minimum living funds in a crisis such as a business closure.
Members can also receive a "hope incentive" that local governments provide to small businesses newly enrolling in the program. Depending on the region, an additional 10,000 won to 30,000 won a month is set aside for up to 12 months. This year, 17 metropolitan governments and 110 basic local governments nationwide are running such programs.
"Given that Lotte Card has a wide range of customer touchpoints, we expect this agreement to open the way for more small businesses and small business owners to make use of Noh-ran Umbrella," said Lee Chang-ho, head of KBIZ's mutual aid business unit. "We will expand cooperation with a variety of institutions to strengthen the social safety net for small businesses and small business owners."
"Lotte Card provides a range of financial and lifestyle services so that small business owners can run their businesses with stability," said Choi Moon-seok, head of Lotte Card's partnership business division. "Through this agreement, we will actively cooperate to make it easier for small business owners to learn about and enroll in Noh-ran Umbrella."
