Youth Direct Support Program 'Cheongnyeon Naeil Chaeum Gongje' Officially Launched

Representative Policies Supporting Youth and Enterprises

[Asia Economy Honam Reporting Headquarters Reporter Seo Young-seo] Naeil N Gwangju (CEO Ko Young-chun), the operating institution of the Youth Tomorrow Savings Deduction, announced on the 31st that the "Youth Tomorrow Savings Deduction Project," in which youth, companies, and the government each contribute a certain amount to support youth asset formation to promote new employment and long-term retention of youth in small and medium-sized enterprises (SMEs) and mid-sized companies, is providing great help to youth and companies, according to the Ministry of Employment and Labor (Minister Lee Jae-gap).

Since its first implementation in 2016 and its significant expansion through the 2018 supplementary budget, this project has established itself as a representative policy supporting youth and companies by satisfying two main goals: "companies secure talent, youth accumulate lump sums."

Youth under the age of 34 who have been employed at SMEs or mid-sized companies for less than six months are eligible to apply. For the 2-year plan, over 24 months, individuals contribute 3 million KRW, the employment retention support fund provides 4 million KRW (government support), and the government employment support fund adds 9 million KRW, totaling 16 million KRW after 24 months.

So far, a cumulative total of 253,610 youth and 72,071 companies have enrolled, and 22,501 youth have received maturity payments (as of December last year).

Analysis of the results shows that the time required for youth employment was shortened by 5 months, and the employment retention rate one year after employment increased by 29.7%, demonstrating effects in promoting employment and encouraging long-term retention.

In particular, companies on the ground have expressed opinions that the program reduces turnover rates, induces youth employment in SMEs, and helps in career formation.

Kim Je-hwan, Deputy Director of Naeil N Gwangju, the operating institution of the Youth Tomorrow Savings Deduction in Gwangju Metropolitan City, said, "Direct support for youth helps overcome wage gaps between large corporations and SMEs, and as a company, it lowers the turnover rate among young workers," adding, "As in last year, applications are expected to close by August this year," urging interested youth to apply promptly.

Meanwhile, youth wishing to apply for this program can submit their applications online to delegated operating institutions approved by the Ministry of Employment and Labor in each region.