The Ministry of SMEs and Startups and the Ministry of Employment and Labor signed a memorandum of understanding (MoU) on Tuesday at the Government Complex Seoul, launching a joint policy framework to expand youth employment opportunities while addressing persistent workforce shortages faced by small and medium-sized enterprises (SMEs) and micro-businesses.
 
The agreement reflects a shared recognition that improving job access for young people, stabilizing employment conditions, and securing human capital for SMEs require coordinated, whole-of-government action. Through this partnership, the two ministries aim to align employment, training, and business support policies to deliver tangible outcomes for both jobseekers and employers.
 
Under the MOU, the ministries will work closely across four priority areas: narrowing the job mismatch between youth and SMEs, cultivating talent aligned with demand in emerging industries; strengthening on-stie recruitment and employment support; and improving working conditions to build a sustainable foundation for quality jobs.
 
A key focus will be on helping young people establish stable career pathways within SMEs. The government plans to identify and promote high-potential SMEs for youth employment, while expanding hiring incentives and work-experience opportunities to encourage youth entry and long-term retention in smaller firms.
 
The cooperation will also integrate skills development initiatives announced in December under Korea’s national plan to foster AI talent for the labor market. In particular, SME-focused digital and AI transformation (AX) support programs will be linked with vocational training initiatives, enabling SMEs to access job-ready talent while strengthening employment and startup pathways for program participants. In addition, safety-net measures will be reinforced by connecting the Ministry of SMEs and Startups’ Hope Return Package with the Ministry of Employment and Labor’s National Employment Support Scheme, supporting micro-business owners seeking re-entry into the labor market.
 
Going forward, the Ministry of Employment and Labor will further connect job placement, vocational training, and employment services to reduce entry barriers for young people and help SMEs secure talent more effectively. The Ministry of SMEs and Startups, for its part, will step up efforts to stabilize SME and micro-business operations and strengthen growth foundations, with the goal of generating more high-quality jobs.
 
“This agreement responds to pressing challenges of our time – expanding opportunities for young people while easing labor shortages among SMEs and supporting micro-businesses,” said Han Seong-sook, Minister of SMEs and Startups. “It is not a symbolic declaration, but a meaningful first step toward concrete policy implementation and institutional reform.”
 

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