Ministry of SMEs and Startups Selects and Supports Model SMEs for Talent Development

Approximately 280 Outstanding Companies Designated for Talent Development and Performance Sharing

[Asia Economy Reporter Kim Jong-hwa] The Ministry of SMEs and Startups is accepting applications from companies wishing to participate in the designation of 'Talent Development-Oriented Small and Medium Enterprises (SMEs) 2021' from the 22nd of this month until the 16th of next month.

Since 2014, the Ministry has discovered and designated a total of 1,609 'Talent Development-Oriented SMEs' that have invested in their employees to improve productivity and profitability, and have rewarded and shared those achievements. This year, about 280 additional companies will be designated and provided with various benefits.

Eligible applicants include all SMEs except for general entertainment bars and similar businesses. Notably, this year, a new 'Public Recommendation System' has been introduced, allowing the general public to recommend outstanding talent development companies.

Through the Public Recommendation System, anyone can recommend excellent SMEs that nurture and invest in talent by accessing 'Policy → Public Recommendation → Talent Development-Oriented SMEs' on the Ministry’s website from the 22nd of this month until the 9th of next month.

The selection process involves document and on-site evaluations followed by a review committee to designate Talent Development-Oriented SMEs. The document evaluation is conducted by the Small and Medium Business Corporation, assessing quantitative factors such as sales growth rate and return on total assets to select candidates for on-site evaluation. The on-site evaluation assesses the CEO’s commitment to talent development and the training infrastructure.

Companies scoring a combined total of 70 points or more in the document and on-site evaluations are reviewed by the committee for final designation as Talent Development-Oriented SMEs. Designated companies receive a certificate and plaque, support for entry into Worknet’s dedicated talent development recruitment section, and online and offline promotion using excellent talent development casebooks.

Additional benefits include a 5-point bonus in SME job evaluations, eligibility to apply for job creation promotion funds, a 2-point preference in military service designated company selection evaluations, and a 50% discount on training costs when participating in training programs by the Small and Medium Business Corporation.

Lee Jung-hoon, CEO of Empoplus Co., Ltd., a solution development company for ID verification designated as a Talent Development-Oriented SME in 2019, said, "Until 2017, we struggled with a small increase in operating profit margin. After realizing the importance of talent development, we invested more than 1.5 million KRW per employee annually in training and enhanced welfare benefits. Over the past three years, sales and operating profit margins have exceeded 10% on average, showing that strengthening employee capabilities ultimately leads to corporate growth."

Jung Ki-hwan, Director of the Job Policy Division at the Ministry of SMEs and Startups, stated, "We hope that the Talent Development-Oriented SME designation system will foster a culture where SMEs and employees grow together and share achievements, and further help attract excellent talent to SMEs. We will strive to expand the number of SMEs that actively invest in and nurture talent."

Companies wishing to be designated as 'Talent Development-Oriented SMEs' can apply online by registering as corporate members on the 'Comprehensive Management System for SME Workforce Support Projects' from the 22nd of this month until the 16th of next month and submitting the application form and related documents.