Encouraging Long-Term Service and Lump-Sum Savings... Cheongnyeon Naeil Chaeum Gongje Supports 70,000 People This Year

Over 130,000 Recipients in 5 Years... Participation Applications Open from Tomorrow

Last year's 5th anniversary event of the Youth Tomorrow Filling Deduction. (Image source=Yonhap News)

[Sejong=Asia Economy Reporter Moon Chaeseok] The Ministry of Employment and Labor announced on the 2nd that it will start accepting applications for the Youth Tomorrow Savings Deduction from the 3rd.

This year, the new support target is 70,000 people, and any young person newly employed at a small or medium-sized enterprise (SME) with five or more employees can apply. The Youth Savings Deduction is a program designed to help young people accumulate a lump sum and encourage long-term employment at SMEs. If a young person employed at an SME saves 3 million won over two years, they can form assets worth 12 million won with support from the company (3 million won) and the government (6 million won).

Since the program started in July 2016 until November last year, over five years, 130,572 people have received maturity payments. The two-year retention rate of young people who joined the Youth Savings Deduction at SMEs was 67.3%, more than twice the overall youth retention rate (33.0%).

The Ministry of Employment and Labor has partially improved the program considering its issues. It accepted criticism that when young people cancel the savings deduction before two years due to workplace harassment, sexual harassment, etc., they only receive part of the accumulated amount, which discouraged them from enduring until maturity. From this year, if they cancel early for such reasons, they will receive the full accumulated amount. Previously, if they resigned due to the company's fault and canceled early, they had to be re-employed within six months to continue participating in the Youth Savings Deduction, but this year, considering the COVID-19 situation, re-employment within one year is allowed.

For more details and how to participate in the Youth Savings Deduction, please check the related website.