Hansung Sook: "Expanding Youth Employment and Alleviating SME Labor Shortages Are Pressing Tasks of Our Time"

MSS and MOEL Sign MOU
to Expand Youth Employment
and Alleviate Labor Shortages for SMEs

On January 20, the Ministry of SMEs and Startups announced that it had signed a memorandum of understanding (MOU) with the Ministry of Employment and Labor to support small businesses, microenterprises, and youth employment, and that the two ministries would begin full-scale policy cooperation.

This MOU was established as both ministries reached a consensus on the need to expand employment opportunities for young people, alleviate workforce shortages faced by small businesses and microenterprises, and build a government-wide cooperation system to create better working environments and enhance job stability.

Minister Han Sung-sook of the Ministry of SMEs and Startups (right) and Minister Kim Young-hoon of the Ministry of Employment and Labor are signing a memorandum of understanding (MOU) for small businesses, microenterprises, and youth employment at the Government Seoul Office in Jongno-gu, Seoul, on the 20th, and taking a commemorative photo. Ministry of SMEs and Startups

Through this agreement, the two ministries plan to closely cooperate to: resolve job mismatches between young people and small businesses; foster talent that meets the demands of new industries; strengthen on-site employment and recruitment support; and improve working conditions and establish a sustainable foundation for jobs. In particular, they will identify promising small businesses for youth employment and support these companies to expand youth recruitment and work experience opportunities, so that young people can grow stably in the small business sector.

In line with last month’s announcement of the “AI Talent Development Plan for the Labor Market,” the ministries will also support the development of talent suitable for small businesses by linking the SME Artificial Intelligence Transformation (AX) Support Project with the AI Vocational Training Project. Furthermore, the Ministry of SMEs and Startups will strengthen the safety net for microenterprises by reinforcing the connection between its Hope Return Package and the Ministry of Employment and Labor’s National Employment Support Program, supporting reentry into the labor market.

The Ministry of Employment and Labor plans to connect employment support, vocational training, and employment services in an integrated manner to ease the burden of youth entering the labor market and to help small businesses secure talent. The Ministry of SMEs and Startups will enhance support to ensure that high-quality jobs are created by strengthening the management stability and growth foundation of small businesses and microenterprises.

Hansung Sook, Minister of SMEs and Startups, stated, “Expanding job opportunities for young people, alleviating workforce shortages in small businesses, and supporting microenterprises are pressing issues of our time. The MOU between the Ministry of SMEs and Startups and the Ministry of Employment and Labor is not just a declaration of cooperation, but a significant first step toward implementing practical policies and institutional reforms to address these urgent challenges.”

Kim Young Hoon, Minister of Employment and Labor, said, “This MOU is the starting point for creating tangible changes that both young people and small businesses can feel. The Ministry of Employment and Labor and the Ministry of SMEs and Startups will focus their policy efforts to create a virtuous cycle that connects opportunities to young people and talent to small businesses.”