Receiving 40.27 Million KRW After 30 Million KRW Payment Over 5 Years... Savings Deduction for SME Employees Launched

Resolving Workforce Shortages in Small and Medium Enterprises
Expectations for Asset Formation Among Current Employees

The 'Savings Deduction for Employees of Small and Medium Enterprises (SMEs)' has been launched, and the first subscribers have joined. This product was created through the combined efforts of companies, banks, and the government. SME employees who deposit 500,000 KRW monthly for five years, totaling 30 million KRW, will receive an additional 10.27 million KRW after five years, amounting to 40.27 million KRW in total.

On the 28th, the Ministry of SMEs and Startups held a ceremony at the IBK Industrial Bank of Korea Guro-dong Branch in Guro-gu, Seoul, to celebrate and encourage the first SME employees to subscribe to the 'Savings Deduction for Employees of SMEs.'

Before the event, in the SME-dense area of Guro Digital Complex, Minister Oh Young-joo, IBK Bank President Kim Sung-tae, and staff personally handed out product brochures to SME employees on their way to work, conducting street promotions.

Oh Young-joo, Minister of SMEs and Startups (second from the left), visited the IBK Industrial Bank of Korea Guro-dong Branch in Guro-gu, Seoul on the 28th and took a commemorative photo with small business employees, company representatives, and other related personnel, including the first subscribers to the preferential savings deduction for small business employees.

This product allows SME employees to deposit between 100,000 KRW and 500,000 KRW monthly, receiving corporate support funds amounting to about 20% of their deposits and preferential interest rates from partner banks. Additionally, tax benefits such as tax deductions at maturity provide higher returns compared to regular savings products. It is explained that subscribing to a savings product with a maximum annual interest rate of 13.5% can yield an effective return of 34%. Furthermore, subscribers will also receive welfare services such as health check-up expenses, vacation allowances, and education vouchers.

The first subscribers on this day were Mr. Jo, a 31-year-old from AR, a company specializing in manufacturing constant temperature and humidity controllers, and Ms. Lee, a 38-year-old from OurBox, a fulfillment service company. They had pre-subscribed during the business agreement ceremony on the 19th of last month. Mr. Jo, the first subscriber, said, "I have high expectations that joining the savings deduction will help young people build stable assets."

Han Seung-il, CEO of AR, and Park Cheol-soo, CEO of OurBox, who supported the first subscriptions, helped 12 and 9 employees respectively to join. They also announced plans to survey interested employees and provide more active support going forward.

Minister Oh Young-joo of the Ministry of SMEs and Startups said, "When I meet SME representatives, they often express difficulties in workforce supply, saying 'everything comes down to manpower.' I hope this policy will help alleviate the manpower shortage in SMEs. It is designed as a five-year maturity product to help employees build assets and encourage long-term employment, creating a win-win situation for both employers and workers."