Starting next year, the government will tie corporations' hiring records for young people and regional talent to budget programs such as subsidies, loans, and research and development. It plans to offer incentives such as higher subsidy rates, preferential interest rates, and priority in future support programs.
On the 9th, at a meeting of related ministers on youth policy chaired by Prime Minister Kim Min-seok, the government announced a "financial support plan linking corporate support and jobs."
First, for large corporations, it will push measures to give preference based on hiring records of young people and regional talent in programs such as ▲ the "5 poles, 3 specialties" growth engine special subsidies ▲ relocation to Korea (reshoring) investment support ▲ cash support for foreign investment ▲ regional investment promotion subsidies ▲ and Unicorn Bridge.
For example, if a reshoring corporation hires young people or regional talent, it will receive a preferential subsidy rate, and if it creates additional new jobs beyond the plan, the subsidy rate will be additionally settled by 1 percentage point (p) for every 10 extra hires.
For scale-up corporations, the government plans to give preference when selecting targets for follow-up support programs. Programs under discussion include ▲ the AI big tech promotion program ▲ Global TIPS (commercialization) ▲ AX Sprint (rapid commercialization of AI application products) ▲ and the software high-growth club support program. For small and midsize corporations and mid-tier corporations that faithfully carried out their hiring plans, it will also expand support for programs such as ▲ the Jump-up program ▲ and overseas construction market development.
For various loan and interest subsidy programs, it will offer preferential interest terms linked to whether hiring targets are met. Programs under review include ▲ interest subsidies to promote a transition to eco-friendly vehicles ▲ loans for technological innovation in national high-tech strategic industries ▲ and loans to foster future environmental industries.
However, the government decided not to apply this approach to programs targeting early-stage venture corporations, to ensure that employment-first business plans do not hinder corporate innovation. In addition, the government will pursue measures to protect jobs during the AI and digital industrial transition and to link the hiring of young AI talent.
The Ministry of Planning and Budget said, "We plan to flesh out the tasks included in this plan during the process of drafting the 2027 government budget bill."