Regular Full-Time Youth Employment for 6 Months at SMEs: '9.6 Million KRW per Person' Incentive

Ministry of Employment: "Youth Job Leap Incentive Program to Start on the 20th"

Job seekers registering their resumes at the "Tomorrow JOB Together, Employment Fair" held on the 16th at Haenuri Town, Yangcheon-gu, Seoul. Photo by Jinhyung Kang aymsdream@

[Sejong=Asia Economy Reporter Moon Chaeseok] The Ministry of Employment and Labor announced on the 19th that it will start the 'Youth Job Leap Incentive' program from the 20th, which provides up to 800,000 KRW per month for up to one year per person to small and medium-sized enterprises (SMEs) that hire young job seekers as regular employees and maintain their employment for more than six months.

The support targets include young people who have been unemployed for six consecutive months, those with education levels of high school graduation or below, and young people participating in the National Employment Support System who have established an Individual Action Plan (IAP) for job seeking. The plan is to support a total of 140,000 people. The principle is to support companies with five or more insured employees under employment insurance, with support provided for up to 30 people per company.

To prevent 'free riders' who only take subsidies, verification standards have been strengthened. Unlike the previous program that included contract workers, support will only be provided to companies that maintain employment for more than six months. Companies that have employed workers for at least 30 hours per week for six months, comply with the minimum wage, and have not conducted artificial layoffs are eligible for support.

Incentives for SMEs located in provincial areas will be strengthened. Within the limit of 30 people, 100% of the number of insured employees under employment insurance will be supported. In the metropolitan area, only 50% will be supported. Although the principle is to support companies with five or more insured employees, companies related to key industries fostered by metropolitan governments and companies located in employment crisis areas will be eligible for support even if they have fewer than five employees.

The Ministry of Employment and Labor stated that this incentive program will only apply to young people hired this year. For the existing program, only the remaining support for young people hired until last year will be provided.

Minister of Employment and Labor Ahn Kyung-deok said, "There are still many young people who do not feel the effects, such as long-term job seekers and those who have given up on job searching," adding, "Through the payment of incentives, we expect to support the creation of private sector jobs and promote the employment of young job seekers, providing an opportunity for young people and companies to overcome difficulties caused by COVID-19 and leap forward together."

The Ministry of Employment and Labor also announced plans to operate a 'Youth Job Leap Incentive Special Recruitment Center' on Worknet. It plans to provide linked support with other job programs such as the National Employment Support System and the Youth Tomorrow Savings Deduction System. Employers who wish to participate can apply by designating the operating agency responsible for the company's location on the program website.