Young Workers Employed in Manufacturing and Shipbuilding SMEs Receive 4.8 Million Won After 2 Years

Up to 7.2 Million KRW per Year
for Companies in Sectors with Job Vacancies

Youth employed in small and medium-sized enterprises (SMEs) in sectors with job vacancies, including manufacturing and shipbuilding, will receive 2.4 million KRW if they maintain long-term employment for more than 18 months. If the employment period exceeds 24 months, an additional 2.4 million KRW will be given, allowing a maximum of 4.8 million KRW.

The Ministry of Employment and Labor announced on the 23rd that it will launch the 'Youth Job Leap Incentive' program to support youth challenging employment and the growth of SMEs.

The Youth Job Leap Incentive program provides up to 7.2 million KRW annually to SME employers who hire youth facing employment difficulties, such as those unemployed for more than four months, those with a high school diploma or less, or youth with less than one year of employment insurance coverage after graduating from their final school. Previously, only SME employers who hired 'youth facing employment difficulties' were eligible, but now the program expands to include SME employers in 10 sectors with job vacancies?such as manufacturing, shipbuilding, root industries, health and welfare, shipping, and fisheries?who hire 'general youth.'

While previously only employers were supported, this time general youth employed in sectors with job vacancies are also included as beneficiaries. Incentives are provided both to youth who maintain long-term employment in the 10 sectors with job vacancies and to the SMEs employing them. Employers can receive up to 600,000 KRW per month per new hire for up to one year, totaling a maximum of 7.2 million KRW. Youth can receive up to 4.8 million KRW after two years of employment, receiving 2.4 million KRW each at 18 months and 24 months of continuous employment.

Companies wishing to receive the Youth Job Leap Incentive related to sectors with job vacancies must apply for the incentive in advance on Employment24 according to the scale of hiring before recruiting youth. Applications can be made up to 50% of the average number of insured employees over the previous 12 months per company, and incentives can be received after a certain period following youth employment. Youth can apply for the incentive on Employment24 starting the day after 18 months and 24 months of continuous employment.

Hong Kyung-ui, Director of Youth Employment Policy at the Ministry of Employment and Labor, said, "Structural factors such as the dual labor market and the tendency to hire on an as-needed or experienced basis are increasing the burden on youth job seekers," adding, "We expect the Youth Job Leap Incentive to help more youth find employment." He continued, "Since this year a new type directly supporting long-term employment of youth in sectors with job vacancies has been established, it is expected to resolve job vacancy mismatches and create a synergy effect in youth employment."