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Maximize Your Tax Savings with the "Yellow Umbrella(노란우산공제)" Deduction

The "Yellow Umbrella" Union is an innovative, government-backed program designed specifically for small and medium-sized enterprise (SME) owners in Korea, offering a financial safety net. This initiative is particularly tailored for sole proprietors and their representatives, aligning with Article 115 of the SME Union Law. The primary goal is to provide a safeguard against the challenges of retirement, bankruptcy, or unforeseen circumstances, this is a deal~

Key features of the "Yellow Umbrella" Union include:

  1. Government Guarantee: The program is backed by the Korean government, ensuring reliability and security.

  2. Legal Protection: Accounts under this program are protected against liens or provisional attachments.

  3. Tax Benefits: Contributions are tax-deductible up to 3 million won annually, offering savings on personal and corporate taxes.

  4. Compounded Interest: The account accrues compound interest, allowing for a substantial withdrawal in case of business failure.

  5. Insurance Benefits: The program includes free injury and accident insurance worth about 30 million won for the first two years.

However, there is a cap of one million won for monthly contributions. This initiative is not just for Korean nationals but is also accessible to expatriate sole proprietors and CEOs.

For more information or to check eligibility, interested parties can contact me at  or If you would like a free consultation with an English-speaking Accountant in Korea, please schedule a call at: Schedule a Call with Jz


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