[Exclusive] "Deposit 2 Million Won Annually for 5 Years, Receive 40 Million Won"... Youth Seafarers Also Eligible for Chaeum Deduction Benefits

The government is promoting a so-called 'Seonwon Chaeum Deduction' (tentative name) policy for young seafarers newly entering the labor market. The main point is that if a young seafarer deposits 2 million KRW annually, they can receive a performance reward of up to 40 million KRW after five years, combining support from shipping companies and the government. This measure aims to strengthen the working conditions of early-stage seafarers who have been left out of the benefits of the Youth Deduction due to income criteria. The government plans to expand incentives for young seafarers to resolve the increasingly severe manpower mismatch in the maritime industry, such as the avoidance of long-term boarding.

According to related ministries on the 25th, the Ministry of Oceans and Fisheries recently requested the Ministry of Economy and Finance to allocate next year's budget for the implementation of this Seonwon Chaeum Deduction. This is to prepare measures to increase asset formation for early-stage personnel with 1 to 5 years of seafaring experience. It is similar in nature to the 'Youth Tomorrow Deduction' run by the Ministry of Employment and Labor for workers aged 15 to 34 in small and medium-sized manufacturing and construction industries. However, considering the special characteristics of the maritime industry, such as the time required to obtain a navigator's license, the age limit has been removed, and the accumulation period extended from 2 years to 3 to 5 years.

Specifically, the Seonwon Chaeum Deduction targets about 100 early-stage personnel at the level of third mate working on domestic coastal vessels. If a young seafarer deposits 2 million KRW annually, the shipping company and the government will each support 2 million KRW and 4 million KRW respectively, allowing the seafarer to receive 24 million KRW plus interest after 3 years, and 40 million KRW after 5 years. The benefit is limited to early-stage personnel on coastal vessels because their average monthly wages are relatively lower than those of foreign-going vessel workers who receive higher wages. According to the Korean Seafarers Statistical Yearbook published by the Ministry of Oceans and Fisheries, the average monthly wage of a third mate on a coastal vessel last year was 3.73 million KRW before tax, which is only 76% of the 4.89 million KRW earned by foreign-going vessel workers. In particular, considering the 72-hour workweek and overtime pay stipulated by the Seafarers Act, the actual wage is known to be below the average of general workers.

Given this situation, the turnover of early-stage seafarers employed on coastal vessels is worsening, leading to an aging problem among navigators. According to the turnover status of seafarers compiled by the Ministry of Oceans and Fisheries last year, the turnover rate of third mates on merchant ships was 30.7%, overwhelmingly higher than that of second mates (4.0%) and first mates (4.4%). Among the total 7,435 personnel on coastal vessels last year, only 479 workers were under 29 years old, accounting for just 6.4%, while 4,432 workers were aged 60 or older, making up 59.6% of the total. The government’s reason for strengthening incentives for young seafarers and focusing on early settlement is based on the judgment that the supply-demand imbalance of national seafarers could ultimately shake the foundation of the future maritime industry.

The Ministry of Oceans and Fisheries explains that this problem awareness aligns with the Yoon Seok-yeol administration’s national agenda. The government’s national agenda implementation plan specifies the establishment of the 'Seonwon Employment Deduction' in 2025. The ministry argues that, given the steep aging trend, related policies should be implemented a year earlier to promptly secure young seafarer manpower. A ministry official said, "In a situation where young manpower is decreasing, we are preparing to implement the Seonwon Employment Deduction benefits, which expand incentives for them, as early as next year," adding, "We are discussing related details with the Korea Shipping Association."

However, securing the related budget remains a variable. With the government’s tax revenue shortage worsening, whether the Ministry of Economy and Finance will approve the budget requires further consultation. The Ministry of Oceans and Fisheries plans to first secure next year’s budget to conduct an early pilot operation of the Chaeum Deduction and gradually increase the number of beneficiaries. A Ministry of Economy and Finance official explained, "We sympathize with the manpower mismatch problem in the maritime industry, but more discussion is needed before executing the related budget."