Lee So-young: 'Double Taxation of Health Insurance Premiums' on Yellow Umbrella Scheme, Will Discuss with Ministry of Health and Welfare

Minister of SMEs and Startups Lee So-young stated today (October 7) regarding the issue of health insurance premiums being double-charged to some small business owners enrolled in the Yellow Umbrella scheme, "It appears to have the characteristics of double taxation, and I will discuss the matter with the Ministry of Health and Welfare."

Minister Lee made the remarks in response to a question by lawmaker Jeon Eun-soo of the Democratic Party of Korea during the parliamentary audit held by the Trade, Industry, Energy, SMEs, and Startups Committee of the National Assembly.

The Yellow Umbrella is a mutual-aid system operated to help representatives of small businesses and small business owners restart their businesses and secure stability in their old age.

When subscribers pay monthly installments ranging from 50,000 to 1 million won, they receive mutual-aid payouts in the event of business closure or old age.

Lawmaker Jeon pointed out, "Business owners already pay Yellow Umbrella installments from income that has been subjected to health insurance premiums, but when they terminate their membership early and receive a refund of their paid amounts, health insurance premiums are imposed on those funds all over again," adding, "The Yellow Umbrella, which is meant to help small business owners restart their lives, is actually placing a burden on them at their most difficult moments."

In response, Minister Lee said, "Health insurance premiums have already been paid during the principal payment process, and having them classified as new income when the payouts are returned so that insurance premiums are paid again appears to have the characteristics of double taxation," and added, "I will discuss this with the Ministry of Health and Welfare."

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.