Ministry of SMEs and Startups Closes Program... Records 8:1 Competition Rate
Supports 50% of Labor Costs for SMEs Hiring Research Personnel for 3 Years
"Program Should Expand to Benefit More Startups"
[Asia Economy Reporter Kim Bo-kyung] A government program that supports half of the labor costs for three years when small and medium-sized enterprises (SMEs) hire outstanding research personnel is receiving strong interest in the field. Recently, when recruiting hopeful companies, the support budget limit was for 205 people, but a total of 1,567 companies applied. The competition rate reached 8 to 1. Participants praised the program for reducing the burden of high salaries for researchers and providing a foundation for company growth. There were also opinions that the program should be expanded so that more startups and young people can benefit.
According to the Ministry of SMEs and Startups and the Korea Industrial Technology Promotion Association on the 11th, the Ministry of SMEs and Startups closed applications for the "2021 First Half Small and Medium Enterprise Research Personnel Support Project" on the 5th. This project supports 50% of labor costs for three years when SMEs hire research personnel to promote technological innovation and strengthen capabilities. The research personnel hiring support is divided into two categories: new (entry-level) and experienced, with only one person supported per company. A total of 205 personnel were to be supported, with 140 new and 65 experienced positions. A total of 1,567 SMEs applied, with 915 for new and 652 for experienced positions. The combined competition rate reached 8 to 1, showing strong enthusiasm for applications. The Ministry selects recipients by comprehensively evaluating companies' R&D investment ratios, financial capabilities, retention of research personnel, and R&D plans.
The high response from the industry to the research personnel support project reflects how difficult it is to secure talent. In the industry, large corporations or IT and game companies offering high salaries have continuously absorbed outstanding research personnel. The research personnel support project has emerged as an alternative to address this job demand-supply mismatch issue.
Senior Researcher Kwak Cheol-hoon, who majored in Management Information Systems, benefited from this program when he joined the venture company "SignLab" located in Busan in 2017. Researcher Kwak said, "Despite being a venture company, the starting salary was relatively higher than that of acquaintances," and added, "It is a program where local SMEs facing manpower shortages and young people can both win." To receive labor cost support as a new research personnel, applicants must be under 39 years old and have obtained a bachelor's, master's, or doctoral degree in science or engineering within the last five years. Companies must have an affiliated research institute or a dedicated R&D department to apply.
Director Cho Min-su, who joined the small manufacturing company "TechWithYou" located in Suwon, Gyeonggi Province as an experienced employee, also received labor cost support for three years through this program. Director Cho said, "The founding members were composed of highly experienced and highly educated personnel, so we had to bear high labor costs," and added, "Through the research personnel support project, we reduced the labor cost burden and secured talented individuals with high technical skills to promote the company's growth." Director Cho majored in electronic engineering and previously worked on semiconductor circuit design at a large corporation.
Director Cho pointed out the tendency of experienced personnel to avoid SMEs and advised, "Large corporations play the role of a training academy by focusing on young employment and nurturing outstanding talent, while SMEs should prioritize hiring experienced personnel to resolve the personnel bottleneck in large corporations, creating a virtuous cycle." He also said, "Policy support to overcome the salary gap between large and small-medium enterprises is necessary," and expressed hope that "the program will be further expanded so that more startups can benefit."
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