The Korea SMEs and Startups Agency (KOSME) announced on the 2nd that it will partner with the fintech company Toss Bank to raise awareness of the preferential savings deduction for employees of small corporations.
The preferential savings deduction for employees of small corporations is one of the measures to alleviate the labor shortage in small corporations and is a policy financial product launched last October in collaboration with the Ministry of SMEs and Startups, KOSME, Industrial Bank of Korea, and Hana Bank.
KOSME plans to increase awareness among the 2030 generation by partnering with Toss Bank, which is widely used by young employees in small corporations, and by conducting promotions and mobile gifticon events.
The preferential savings deduction product for employees of small corporations allows workers to contribute between 100,000 won and 500,000 won each month, with the corporation adding 20% to the contributions. Upon maturity, employees can receive the total savings along with interest.
If an employee contributes 500,000 won every month for five years, they will receive about 40.29 million won, which is 134% of their contributions before tax. Unlike the existing Tomorrow Savings Deduction, all employees, including those in fixed-term or part-time work, can sign up, and they can receive a maximum preferential interest rate of 2.0% and tax support from the government. After surpassing 10,000 subscribers in just 23 days since the product launch, the number of subscribers is now approaching 40,000.
To enroll, the small corporation and the employee must consult in advance, after which the corporation can apply through the KOSME Tomorrow Savings Deduction website.
Kang Seok-jin, director of KOSME, noted, "The preferential savings deduction for employees of small corporations is a good win-win system that provides practical benefits to both small corporation workers and businesses," adding, "I hope that young employees in their 20s and 30s, who will lead the future of small corporations, will participate."