Korea SMEs and Startups Agency (KOSME) said on the 26th that it held a briefing session on the local government collaborative asset-building support program at the main conference room of the Ministry of SMEs and Startups in Sejong.
The session was prepared to share the status of the mutual-aid program for employees of small and medium-sized enterprises and to gather on-site feedback to advance the mutual-aid program being carried out in collaboration with local governments.
Attendees included the Ministry of SMEs and Startups (MSS) and Korea SMEs and Startups Agency (KOSME), as well as officials from 10 local governments such as Jeju Special Self-Governing Province and Ulsan Metropolitan City. Participants shared improvements identified during program operations and discussed directions and cooperation plans to expand the program to other local governments.
Local governments commonly noted that labor shortages at small and medium-sized enterprises are worsening due to a lack of inflow of young workers and frequent job changes. In response, opinions were raised that it is necessary to expand workforce support linked to asset building that can encourage local settlement and long-term employment.
To address these issues, the government plans to expand local government participation in non-capital regions, border areas, and population-declining areas in line with its balanced regional development policy centered on "5 hubs and 3 specials (5-geuk 3-teuk)." The 5 hubs and 3 specials is a spatial design strategy to promote balanced regional development by reorganizing the nation into five wide-area hubs (5 hubs) and three special self-governing provinces (3 specials).
In addition, the government plans to design mutual-aid programs that reflect regional characteristics to improve the completeness of system operations. The local government collaborative asset-building support program is a system in which local governments participate in the Ministry of SMEs and Startups (MSS) performance-reward mutual-aid program to support asset accumulation for employees of regional small and medium-sized enterprises. Its purpose is to encourage long-term employment and attract talented people to the regions, thereby strengthening regional industrial competitiveness and contributing to balanced development.
The first model of the collaborative preferential savings mutual aid is Sokcho City. If an employee pays 100,000 won per month, Sokcho City and Korea SMEs and Startups Agency (KOSME) each provide an additional 20,000 won, creating a structure in which 140,000 won is saved every month for three years to help build a lump sum. With no corporate burden, the program can boost the asset building effect for employees without participation pressure.
Cho Han-gyo, executive director for talent growth at Korea SMEs and Startups Agency (KOSME), said, "Based on cooperation with local governments, we will strengthen support for asset building and long-term service for employees of regional small and medium-sized enterprises," adding, "We will contribute to balanced regional development through policy effects that lead to the inflow and settlement of local talent."