Blue Seed System Agreement... First in the Franchise Industry
BGF Retail announced on the 22nd that it has signed a win-win financial agreement with the Korea Workers' Compensation and Welfare Service to alleviate the burden of severance pay for staff at CU convenience store franchisees and to strengthen income security for workers.
The signing ceremony was held at the Korea Workers' Compensation and Welfare Service Seoul Joint Office in Yeongdeungpo-gu, Seoul, attended by Min Seung-bae, CEO of BGF Retail, and Park Jong-gil, Chairman of the Korea Workers' Compensation and Welfare Service.
The Pureun Seed system operated by the Korea Workers' Compensation and Welfare Service is a system where employers receive government support for part of the severance pay calculation amount for workers and then pay the burden amount in monthly installments to create and operate a retirement pension fund. Workers receive retirement benefits by combining the accumulated funds, operating profits, and support funds.
By enrolling in the Pureun Seed system, franchisees and staff can each receive support equivalent to 10% of their severance pay for three years. Franchisees are also exempt from retirement pension management fees for four years. For example, if a staff member receives a monthly salary of 2 million KRW, the monthly installment of severance pay is 200,000 KRW, and the franchisee receives 10% support, so they only need to pay 180,000 KRW. Subsequently, the staff member receives the accumulated 200,000 KRW plus fund operating profits every month, and up to an additional 10% of the existing severance pay as retirement benefits.
Additionally, a dedicated management institution operates the severance funds of subscribers, allowing for stable expected returns.
The Pureun Seed system is available for small businesses with fewer than 30 employees, and this year, the eligibility criteria for support have been expanded to 130% of the minimum wage, covering workers with an average monthly salary of less than 2.68 million KRW.
BGF Retail emphasized that this agreement is the first of its kind in the franchise industry. The agreement aims to help franchisees operate their stores stably through proactive labor system management and to secure brand competitiveness. It is expected to reduce the burden of severance pay for franchisees, lower labor risks, encourage long-term employment of workers, and help alleviate staff shortages.
After signing the agreement, both parties plan to establish a dedicated enrollment channel exclusively for CU franchisees to further promote the system. Min Seung-bae, CEO of BGF Retail, said, "CU is making multifaceted efforts to develop policies that can provide practical help to franchisees. CU will continue to reflect voices from the field to enhance store competitiveness and strengthen partnerships with franchisees."
Meanwhile, BGF Retail is providing various win-win cooperation programs, including ▲ implementation of win-win plans to improve franchisee profits ▲ interest discounts on win-win cooperation funds ▲ safe work insurance ▲ labor, legal, and tax consultation support ▲ compensation insurance for indirect damage to frozen and refrigerated foods.
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