IBK, Ministry of SMEs and Startups Sign Business Agreement for Preferential Savings Deduction Program for SME Employees

'IBK Jungso Gieop Jaejikja Udae Jeochuk' Launching This October

IBK Industrial Bank announced on the 19th that it signed a business agreement at the Bank Federation building in Jung-gu, Seoul, with the Ministry of SMEs and Startups and the Small and Medium Business Corporation for the preferential savings deduction project for employees of small and medium enterprises (SMEs).

The preferential savings deduction for SME employees is a policy financial product designed to alleviate the manpower shortage of SMEs. IBK plans to launch the ‘IBK SME Employee Preferential Savings’ in October to encourage long-term employment of SME employees and support asset formation.

When workers subscribe to the ‘IBK SME Employee Preferential Savings,’ their savings amount (KRW 100,000 to 500,000 per month) will be supplemented by corporate support funds (20% of the worker’s monthly savings) and preferential interest rates (up to 5%), allowing for higher returns. Additionally, 50% of the income tax imposed on the corporate support funds (90% for youth) will be reduced.

SMEs that pay corporate support funds can receive tax benefits such as recognition of expenses, and each company can receive up to 500,000 financial points to pay for loan interest, fees, and card usage charges.

President Kim Sung-tae stated, “This win-win finance project is a very meaningful initiative that supports asset formation for SME workers and helps alleviate the manpower shortage of SMEs. We will continue to expand our own preferential programs for SME workers and strengthen practical co-growth with SMEs and their employees.”