Single-parent Families who wish to receivethe welfare funds shall submit the following documents to the State or localgovernments via the chief of the residence (Eup, Myeon, or Dong) to reach the mayor, governor or the chiefof Gun or Gu.
Single-parent families that wish to establishbusinesses are entitled to welfare funds with low-interest loans.
Borrowing of Welfare Fund
- In order topromote the stabilization of livelihood and self-support of low-incomeSingle-parent Families, the following funds are granted. (Article 13-(1) of theSingle-parent Family Support Act)
· Capital forbusiness operation
· Childeducation expenses
· Medicalexpenses
· Housing fund
Eligible recipients
* Smile Microcredit (Korea Inclusive Finance Agency website - Financial Products - Start-up and Operating Funds - Smile Microcredit Start-up and Operating Funds)
·Smile Microcredit support is available to individuals receiving basic livelihood security benefits, those classified as low-income, individuals with a personal credit score in the bottom 20%, or those eligible for the Earned Income Tax Credit. This program is designed for self-employed individuals (including prospective entrepreneurs) and vulnerable groups who face challenges in accessing traditional financial institutions. They are eligible to obtain loans of up to 70 million KRW at a low-interest rate of 2-4.5% per annum, without the need for collateral or guarantees, to cover necessary start-up funds, operating funds, and self-reliance funds for vulnerable groups.
Loan period
Within 5.5 years
Application for Funds
- Single-parentFamilies who wish to receive the welfare funds shall submit the followingdocuments to the State or local governments via the chief of the residence (Eup, Myeon, or Dong) to reach themayor, governor or the chief of Gun or Gu.(Article 13-(2) of the Single-parent Family Support Act; Article16-(1) of theEnforcement Decree of the Single-parent Family Support Act; Article 8 of theEnforcement Regulations of the Single-parent Family Support Act)
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Classification
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Documents to submit
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Common documents
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Application form for welfare fund
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Additional documents
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Capital for business operation
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Business plan
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Child education expenses
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Certificate of registration
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Medical expenses
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Medical certificate
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Housing fund
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Copy of sales or lease contract
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- The mayor andthe chief of Gun or Gu areobliged to notify the decision of lending welfare funds to the applicantswithout delay and report the details of lending welfare funds to relevantfinancial institutes. (Article 13-(2) of the Single-parent Family Support Act;Article16-(2) of the Enforcement Decree of the Single-parent Family SupportAct)
※ Korean WomenEntrepreneurs Association and The Beautiful Foundation are lending start-upfunds for qualified Single-parent families. Please refer to the websites of therelevant institutes for more information.