Gyeonggi-do Establishes First 'Gongdong Geunro Bokji Fund' to Improve Workers' Welfare

Promotion of SME Worker Welfare and Employment Stability
Attended by Gyeonggi Province, Yangju City, Uijeongbu Employment and Labor Office, and Company Representatives
Benefits for Around 500 Workers from 40 SMEs in Yangju City

Gyeonggi Province announced on the 13th the launch of the first "Gyeonggi Joint Labor Welfare Fund" to reduce welfare disparities among small and medium-sized enterprise (SME) workers.

On the 13th, Gyeonggi Province held a commemorative photo session with officials after signing a business agreement to establish the 'Gyeonggi Joint Labor Welfare Fund' at the Gyeonggi Textile Comprehensive Support Center, together with Yangju City, the Northern Gyeonggi Chamber of Commerce and Industry, and 40 small and medium-sized enterprises. Provided by Gyeonggi Province

On the same day, the province signed a business agreement to establish the "Gyeonggi Joint Labor Welfare Fund" at the Gyeonggi Textile Comprehensive Support Center with Yangju City, the Northern Gyeonggi Chamber of Commerce and Industry, and 40 SMEs. The signing ceremony was attended by Ha Dong-seok, Deputy Governor for Administration, Kang Su-hyun, Mayor of Yangju, Lee Jong-gu, Director of Uijeongbu Employment and Labor Office, Park Jong-seo, Chairman of the Northern Gyeonggi Chamber of Commerce and Industry, as well as employers and workers from the 40 participating SMEs.

The "Gyeonggi Joint Labor Welfare Fund" is created by contributions of 400,000 KRW per worker from SMEs, 300,000 KRW from the province, 300,000 KRW from the city, and 700,000 KRW from the government. This year, starting with about 500 workers from 40 SMEs in Yangju City and a fund of 850 million KRW, the plan is to raise 3.25 billion KRW by 2029.

According to the Ministry of Employment and Labor, welfare expenses for SMEs dropped from 65.1% of those for large corporations in 2012 to 34.1% over ten years. As of 2022, the average monthly welfare cost per worker in SMEs with fewer than 300 employees was 137,000 KRW, about one-third of that in companies with 300 or more employees (401,000 KRW).

The welfare expenses through the "Gyeonggi Joint Labor Welfare Fund" will be paid to SME workers in Yangju City using local currency. The province expects that this fund will not only expand welfare benefits for workers but also contribute to revitalizing the local economy.

Gyeonggi Province plans to pilot the first "Gyeonggi Joint Labor Welfare Fund" in Yangju City and expand it to other cities and counties in the future.

Jo Sang-gi, Director of the Labor Rights Division of Gyeonggi Province, stated, "We hope that the first establishment of the 'Gyeonggi Joint Labor Welfare Fund' will serve as a catalyst for improving workers' actual welfare and reducing turnover rates, enabling companies to operate more stably. We will continue to support the expansion of interest in workers' welfare."