Promoting Win-Win Employment for Young and Middle-Aged Workers
Encouraging Long-Term Retention of Core Talent in SMEs
The Korea SMEs and Startups Agency (Jungjingong) announced on August 10 that it is currently recruiting participating companies for the "Seoul-type Ieum Mutual Aid," a program that supports the recruitment of young and middle-aged workers by small and medium-sized enterprises (SMEs) in collaboration with the Seoul Metropolitan Government.
The "Seoul-type Ieum Mutual Aid" is a long-term employment retention mutual aid program. Under this initiative, SMEs and mid-sized companies based in Seoul that newly hire Seoul citizens who are either young adults (aged 19 to 39) or middle-aged (aged 50 to 64) will jointly contribute KRW 340,000 per month for three years. The contributions are made by Jungjingong, the Seoul Metropolitan Government, the company, and the employee.
Employees contribute KRW 100,000 per month, while Jungjingong and the Seoul Metropolitan Government each provide KRW 80,000, totaling KRW 160,000 of the company's KRW 240,000 share. This means the company only needs to pay KRW 80,000 per month. Over three years, the accumulated amount reaches KRW 12,240,000, which is paid to long-term employees with compound interest.
Notably, the newly introduced incentive program "Seoul-type Generation Ieum," launched jointly by Jungjingong and the Seoul Metropolitan Government, is available for companies that hire both young and middle-aged employees this year and maintain their employment for more than one year. By applying for this program, companies can receive a full refund of their mutual aid contributions, allowing them to participate in the Naeil Chaeum Mutual Aid (Seoul-type Ieum Mutual Aid) without any company contribution.
The "Seoul-type Ieum Mutual Aid," which was launched following the agreement between Jungjingong and the Seoul Metropolitan Government on June 30, is part of the "Cooperative Naeil Chaeum Mutual Aid" projects promoted by Jungjingong. Since 2015, a total of 75 local governments, large corporations, and public institutions have jointly contributed to the mutual aid payments of participating companies, supporting 13,997 employees.
Kang Seokjin, Chairman of Jungjingong, stated, "The Naeil Chaeum Mutual Aid program helps narrow the wage gap between SMEs and large companies and supports asset formation for SME employees. We will strive to create Naeil Chaeum Mutual Aid models in cooperation with not only Seoul but also a wider range of regions, leading innovative growth in local communities."
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