Incheon City Invests 900 Million KRW to Support SMEs in Employing Retired Workers Beyond Retirement Age

Incheon City Hall

[Asia Economy Reporter Park Hyesook] Incheon City is stepping up support for small and medium-sized enterprises (SMEs) that extend the employment of retirees.

The city has set the retirement age at 60 for SMEs in the manufacturing sector. If these companies rehire workers who have reached retirement age for more than one year or newly employ such workers, they will receive an employment extension subsidy of 300,000 KRW per month for up to one year. A budget of 700 million KRW has been secured for this purpose.

Through Biz-Ok, the city aimed to recruit 100 workers from participating companies, but the number of applicants recently exceeded the target. Currently, the application process has shifted to a waiting list, and approvals will be granted after review if vacancies arise among previously applied companies.

Since the employment extension support program for retirees began last year, a total of 300 retirees have returned to the workforce as of this year.

This program is evaluated to have contributed to job activation in line with changes in population structure and life expectancy, and to have prevented retirees from falling into extreme poverty after retirement, thereby promoting employment stability and the livelihood security of retirees.

Kim Sangseop, Head of the Job Economy Headquarters of Incheon City, stated, "In these times of employment instability caused by COVID-19, we expect this program to serve as a much-needed relief for companies and retirees."

This content was produced with the assistance of AI translation services.