Mutual aid program for young employees at SMEs starts receiving application from June 1st, 2018
- Division
- International Cooperation Division
- Date
- 2018.06.04
- Writer
- Deputy Director Young Soon Lee
- File
- Headline
- The government starts receiving the application for the mutual aid program for young employees at SMEs on June 1st, 2018. The aid program gives them the opportunity to accumulate assets of KRW 30 million for five years.
□ The Ministry of SMEs and Startups and the Small and Medium Business Corporation announced the opening of the application process for the Tomorrow Mutual Aid Program for Young Employees on June 1.
Applications can be sent to any of the SBC regional offices in 31 locations and IBK branches across Korea in around 600 locations. Online application is also available at the website (www.sbcplan.or.kr).
□ On March 15, the government announced its plan for the new Tomorrow Mutual Aid for Young Employees program as part of its Jobs for Youth initiative. Young employees are covered by the Tomorrow Mutual Aid for Young Employees, and the young recruits are covered by the Youth Tomorrow Mutual Aid. The approval of the supplementary budget by the National Assembly led to the program’s full launch on June 1.
□ The operational details of the Tomorrow Filling Aid for Young Employees program are as follows.
◦ (Eligibility) Young workers aged between 15 and 34 who are employed by SMEs and middle-standing companies and have worked for the companies for at least a year
- For employees who completed their military service, the age restriction is extended by their period of service. However, the maximum age may not exceed 39.
- In addition, young employees supported by the existing Tomorrow Mutual Aid may transfer to the Tomorrow Mutual Aid for Young Employees.
- The application for the Tomorrow Mutual Aid for Young Employees program closes at the end of 2021.
◦ (Fundraising) Young employees, businesses, and the government jointly contribute to the aid fund. Upon the expiration of the five-year fundraising period, young employees receive the total amount of the fund. The government contributes KRW 10.80 million for the first 3 years of the period, and each business and young employee provide contributions not less than the prescribed amount for the entirety of the period.
* (Contributions) Monthly minimum of KRW 120,000 from the young employee (5 years) + monthly minimum of KRW 200,000 from the business (5 years) +monthly average of KRW 300,000 from the government (3 years; maximum total of KRW 10.80 million)
◦ (Benefits) For businesses, the total amount of their contributions is categorized as a deductible. It is also classified as R&D and human resource development expenses for a 25% tax deduction. In addition, businesses participating in the aid receive extra points for consideration of projects funded by the MSS. For young employees, when they receive the raised amount at the end of the fundraising period (5 years), they receive a 50% tax cut from their income tax.
□ Mr. Jo Junhyeon, the MSS Director General for Technology and Human Resource Innovation Policy, said “The Tomorrow Mutual Aid for Young Employees program is aimed at helping young workers find jobs at SMEs and encouraging them to remain in SMEs. The MSS is looking for talented young workers and SMEs going after their dreams.”
Applications can be sent to any of the SBC regional offices in 31 locations and IBK branches across Korea in around 600 locations. Online application is also available at the website (www.sbcplan.or.kr).
□ On March 15, the government announced its plan for the new Tomorrow Mutual Aid for Young Employees program as part of its Jobs for Youth initiative. Young employees are covered by the Tomorrow Mutual Aid for Young Employees, and the young recruits are covered by the Youth Tomorrow Mutual Aid. The approval of the supplementary budget by the National Assembly led to the program’s full launch on June 1.
□ The operational details of the Tomorrow Filling Aid for Young Employees program are as follows.
◦ (Eligibility) Young workers aged between 15 and 34 who are employed by SMEs and middle-standing companies and have worked for the companies for at least a year
- For employees who completed their military service, the age restriction is extended by their period of service. However, the maximum age may not exceed 39.
- In addition, young employees supported by the existing Tomorrow Mutual Aid may transfer to the Tomorrow Mutual Aid for Young Employees.
- The application for the Tomorrow Mutual Aid for Young Employees program closes at the end of 2021.
◦ (Fundraising) Young employees, businesses, and the government jointly contribute to the aid fund. Upon the expiration of the five-year fundraising period, young employees receive the total amount of the fund. The government contributes KRW 10.80 million for the first 3 years of the period, and each business and young employee provide contributions not less than the prescribed amount for the entirety of the period.
* (Contributions) Monthly minimum of KRW 120,000 from the young employee (5 years) + monthly minimum of KRW 200,000 from the business (5 years) +monthly average of KRW 300,000 from the government (3 years; maximum total of KRW 10.80 million)
◦ (Benefits) For businesses, the total amount of their contributions is categorized as a deductible. It is also classified as R&D and human resource development expenses for a 25% tax deduction. In addition, businesses participating in the aid receive extra points for consideration of projects funded by the MSS. For young employees, when they receive the raised amount at the end of the fundraising period (5 years), they receive a 50% tax cut from their income tax.
□ Mr. Jo Junhyeon, the MSS Director General for Technology and Human Resource Innovation Policy, said “The Tomorrow Mutual Aid for Young Employees program is aimed at helping young workers find jobs at SMEs and encouraging them to remain in SMEs. The MSS is looking for talented young workers and SMEs going after their dreams.”