SME Corporation Partners with Toss Bank to Promote 'Preferential Savings Deduction for SME Employees' to Millennials and Gen Z

Promotional Event Targeting the 2030 Generation
Receive 134% After 5 Years with Monthly Contributions of 500,000 Won
Contract and Part-Time Workers Also Eligible to Join

The Small and Medium Business Corporation announced on July 2 that it has formed a partnership with Toss Bank to raise awareness of the Preferential Savings Deduction for Young Employees of SMEs among the younger generation.

The Preferential Savings Deduction for SME Employees is a policy-based financial product launched in October last year through the collaboration of the Ministry of SMEs and Startups, the Small and Medium Business Corporation, Industrial Bank of Korea, and Hana Bank, aimed at alleviating workforce shortages in small and medium-sized enterprises.

Small and Medium Business Corporation

The Small and Medium Business Corporation plans to boost awareness of the product among people in their 20s and 30s by partnering with Toss Bank, a personal fintech company popular with younger users, to conduct targeted promotions and a mobile gifticon event for SME employees. To participate in the event, users can capture a post about the Preferential Savings Deduction for SME Employees posted on Toss Bank News or the Toss Bank website and share it via Instagram.

With this product, SME employees can contribute between 100,000 and 500,000 won each month, and the SME will match 20% of the employee’s monthly contribution. At maturity, the employee receives the full amount including interest. If an employee contributes 500,000 won per month for five years, they can receive approximately 40.29 million won before tax, which is 134% of the total amount contributed. Unlike the existing Naeil Chaeum Deduction, all employees, including contract and part-time workers, are eligible to join. For the first time in this type of deduction program, a partnership with banks provides a preferential interest rate of up to 2.0% per year, while maintaining the government’s tax benefits, thereby enhancing the advantages of the product.

This program surpassed 10,000 subscribers within 23 days of its launch, and is now nearing 40,000 subscribers. Enrollment is available after prior consultation between the SME and the employee, with the company applying through the Small and Medium Business Corporation’s Naeil Chaeum Deduction website.

Kang Seokjin, Chairman of the Small and Medium Business Corporation, stated, “The Preferential Savings Deduction for SME Employees is a mutually beneficial system that provides tangible benefits to both SME workers and companies. We hope that more companies, especially young employees in their 20s and 30s who will lead the future of SMEs, will take interest and participate.”