Gwangju City Supports Social Enterprises with Labor Costs and Social Insurance Fees

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Metropolitan City announced on the 18th that it will promote a professional workforce support project and a social insurance premium support project for certified social enterprises to establish a self-reliance foundation for (preliminary) social enterprises.

The professional workforce support project is a program that supports part of the labor costs for professional personnel when (preliminary) social enterprises providing social services newly hire professional personnel.

The support is provided for up to 2 people per company for a maximum of 3 years for social enterprises.

However, companies with 50 or more paid workers can receive support for up to 3 people.

Also, preliminary social enterprises can receive support for up to 1 person per company for a maximum of 2 years.

The support amount per person is 2 to 2.5 million KRW per month. The self-payment ratio for social enterprises is 20% in the first year, 30% in the second year, and 50% in the third year. For preliminary social enterprises, it is 10% in the first year and 20% in the second year.

Along with this, a social insurance premium support project is also being carried out to support part of the employer's share of the four major insurance premiums for social enterprises certified by the Minister of Employment and Labor.

The social insurance premium support is limited to companies with up to 50 employees per month and can be supported for up to 4 years within 5 years from the start date of the support project. When all four major insurances are subscribed, 183,590 KRW per worker per month is supported.

(Preliminary) social enterprises wishing to participate in the project can apply by accessing the Social Enterprise Integrated Information System, and selection and support are made through screening by the autonomous district. Applications are accepted online only.

Park Jeong-hwan, Director of the City’s Job Economy Office, said, “We will provide stable jobs and social services to vulnerable groups such as the elderly and disabled, and support the establishment of a self-reliance foundation and continuous growth of social enterprises.”

Meanwhile, Gwangju City supported an average of 84 professional personnel per month and provided social insurance premiums to about 400 people last year to foster social enterprises and promote continuous management innovation.