The Ministry of SMEs and Startups (MSS) said on the 17th that it signed a business agreement at the Bankers Association Building with NH Nonghyup Bank, KB Kookmin Bank, and Korea SMEs and Startups Agency (KOSME) to expand the number of banks handling the "preferential savings deduction" for employees of small and midsize companies.
The preferential savings deduction combines ▲ worker savings (100,000–500,000 won per month) ▲ corporations' support funds (20% of the worker's contribution) ▲ preferential bank interest (up to 4.5% per year), and is structured so that upon a five-year maturity, a total of at least 39.8 million won is paid to the worker.
Jointly promoted by the government and private banks, it launched in Oct. 2024, and in one year about 7,100 corporations and more than 36,500 people enrolled.
The MSS in September added a three-year product in addition to the existing five-year product, widening the range of choices. Starting on the 15th of next month, the number of handling banks will expand from Industrial Bank of Korea (IBK) and Hana Bank to NH Nonghyup Bank and KB Kookmin Bank, which is expected to significantly improve access for small and midsize companies and workers.
At the signing ceremony, the heads of Hanpass and Ssangin attended in person and conducted pre-subscriptions for 30 young employees.
Hanpass CEO Kim Gyeong-hun said, "For small and midsize companies, it is hard to find people, and even when they secure talent, many move to other companies, so there are many concerns about staffing," and added, "With products like the preferential savings deduction, we can encourage long-term tenure of talent, which seems likely to greatly help ease labor shortages."
Minister Han Seong-sook of the MSS emphasized, "Starting Dec. 15, enrollment in the preferential savings deduction will be possible at 2,500 branches nationwide across four banks, so we expect more small and midsize companies and employees to sign up," and added, "We will prepare various support measures so that small and midsize companies can be seen as good workplaces."
At the event, Ministerial commendations were awarded to officials who contributed to the spread of the preferential savings deduction. The awardees were ▲ Kim Yun-seop, Head of Team at Industrial Bank of Korea (IBK) ▲ Jo Eun-seo, assistant manager at Hana Bank ▲ Lee Yeon-u, Head of Team at KOSME. Devicee, a semiconductor display manufacturer in Cheonan, South Chungcheong Province, which enrolled 118 out of 159 employees (a 74% enrollment rate), received a Ministerial commendation.