Lowering Barriers for "Preferential Savings Deduction for SME Employees"... More Participating Banks Added

Introduction of New Three-Year Product and Streamlined Enrollment Process
KB Kookmin and NH Nonghyup Banks Newly Join the Program

The Korea SMEs and Startups Agency announced that, starting December 15, it will expand the number of participating banks for the "Preferential Savings Deduction for SME Employees" program to enhance accessibility and convenience for subscribers.

The Preferential Savings Deduction for SME Employees is a policy-based financial product jointly launched by private banks and the government. When an SME employee deposits between 100,000 and 500,000 KRW each month, the SME contributes an additional 20% of the employee's deposit. Upon maturity, the employee receives the full amount, including interest. Banks offer a preferential interest rate of up to 4.5%. If an employee deposits 500,000 KRW monthly for five years, they can receive approximately 39.8 million KRW before tax, which is 133% of the total amount deposited.

Jungjingong Headquarters, Jinju City, Gyeongsangnam-do

With this expansion, KB Kookmin Bank and NH Nonghyup Bank will newly participate, in addition to the existing IBK Industrial Bank of Korea and Hana Bank. The agency expects that, with more participating banks, a greater number of companies and employees will be able to conveniently enroll in the preferential savings program at nearby bank branches.

In September, a new three-year product was introduced, broadening the range of options for subscribers. While the existing five-year product was advantageous for long-term asset building, the newly introduced structure offers more flexibility to accommodate those who found the longer savings period burdensome.

Additionally, by integrating and simplifying the enrollment process, the processing period has been reduced from 14 days to 7 days, greatly improving user convenience.

Kang Seokjin, President of the Korea SMEs and Startups Agency, stated, "The expansion of participating banks, introduction of the three-year product, and improvements to the enrollment process were all measures aimed at enhancing convenience for employees and companies. We will continue to strengthen the effectiveness of this system, so that it not only helps SME employees build assets and remain in their jobs long-term, but also supports SMEs in securing a stable workforce."