Chairman Kim Ki-mun of the Korea Federation of SMEs (KBIZ) (Photos: KBIZ)

The Korea Federation of SMEs (KBIZ) has overhauled the Yellow Umbrella, a mutual aid program designed to help small business enterprises and entrepreneurs prepare for difficult times they might have in the future, to make another leap forward.

Entry barriers are lowered to help more small businesses and merchants benefit from the mutual aid fund. It is revamped so that services and face-to-fact contacts can be made to correspond to the mobile-first era.

The mutual aid is for small business enterprises and entrepreneurs prepare for difficult times they might have in the future, such as going out of business or life after retirement, by saving money on an installment basis.

They can use the money to either restart their business or safeguard their retirement.

KBIZ unveiled the new brand identity of the mutual aid. KBIZ changed the brand from the Yellow Umbrella Mutual Aid to the Yellow Umbrella for Small Businesses and Merchants’ Mutual Aid on Dec.1.

The mutual aid scheme underwent a facelift after two years. The new brand identity is designed to max out the general public’s visual effect on memory and association.

The new brand identity removed some words and added the words “Small Businesses and Merchants’ Mutual Aid” as a subtitle. The yellow umbrella logo is still intact, conveying a bright future and hope by protecting small businesses and merchants from dangers that might occur at any time.

With the facelift of the brand identity, the mutual aid program is determined to make another leap forward.

KBIZ plans to make the mutual aid program, which focused on businesses since is inauguration in 2007, into a customer-oriented one designed to establish it as a social safety net benefitting more small businesses and merchants.

The mutual aid aims to increase membership from 1.21 million members as of Nov. 30 to 1.38 million people. It targets total savings from 11.9 trillion won to 14.1 trillion won.

The mutual aid wants to raise customer satisfaction levels from current 56.3 percent to more than 70 percent.

The mutual aid plans to focus on lowering entry barriers to increase its membership.

The scope of the monthly installment premium has been expanded from current 50,000 won to 1 million won to that between 10,000 won and 2 million won. The monthly installment premium can increase or decline according to each subscriber’s business situation.

The installment method, limited to monthly and half-year payments, also allow half-year and yearly payments. KBIZ plans to allow temporary relief in which subscribers who are in arrears for a long period of time have their previous contract restored if they restart their payment.

The idea is to ease difficulties small businesses and merchants experience due to the economic downturns.

Lee Won-sup, head of the Yellow Umbrella Mutual Aid Fund Division of the KBIZ, said, “Steps such as the lowering of the minimum monthly installment premium and the diversifying of payment methods are expected to bring more mutual aid benefits and more opportunities for consulting services.”

The mutual aid program plans to aggressively attract more members by targeting e-commerce and other sectors.

The move is designed to target writers, painters, stand-by drivers, quick delivery servicemen, and private caregivers who are not categorized into employees, but report income earnings to tax authorities.

Those who report their income earnings should have been covered by the mutual aid since their conception of retirement or going out of business is ambiguous, Lee said.

(inset) the new brand identity of Yellow Umbrella, a mutual aid designed to help small business enterprises and businessmen. A view of Korea Federation of SMEs headquarters in Yeouido, Seoul.