Korea Federation of SMEs Proposes Improvements to the 'Skilled Elderly Employment Retention System'

Improvement Needed for 'Elderly Continued Employment Incentive' and 'Employment Support Fund for Seniors Aged 60 and Over'

[Asia Economy Reporter Kim Cheol-hyun] The Korea Federation of Small and Medium Business (Chairman Kim Ki-moon) announced on the 11th that it has proposed to the Ministry of Employment and Labor the need to improve the 'Skilled Elderly Employment Retention System' to maintain employment and secure skilled personnel in small and medium enterprises (SMEs), as workforce reductions in SMEs have become visible due to the novel coronavirus infection (COVID-19) and aging has intensified in traditional manufacturing SMEs such as the root industry.

According to the Federation, a paradigm shift in employment policy is needed to actively increase employment incentives beyond passive protection of the unemployed, and in particular, improvements to the systems of the Elderly Continued Employment Incentive and the Employment Support Fund for Elderly Workers aged 60 and over are required. First, the 'Elderly Continued Employment Incentive,' which supports part of the costs to employers who continue to employ workers who have reached retirement age beyond retirement, should increase the current support amount of 300,000 KRW per worker per month to 500,000 KRW and expand the support target to all SMEs that continue to employ elderly workers aged 60 and over, the Federation argued.

Along with this, the 'Employment Support Fund for Elderly Workers aged 60 and over,' which provides partial cost support when workplaces without a set retirement age employ a certain level of elderly workers aged 60 and over, should abolish the sunset clause that limits support until the end of this year, expand the current support amount of 100,000 KRW per worker per month to 300,000 KRW, and eliminate the industry-specific support rate standards for the six major root industries, the Federation emphasized.

Kim Ki-moon, Chairman of the Federation, said, "As the employment crisis caused by COVID-19 continues, the Skilled Elderly Employment Retention Support System must be improved to provide practical help to SMEs," adding, "To improve the Skilled Elderly Employment Retention Support System, expanding the support budget is essential, so active cooperation among related ministries such as the Ministry of Strategy and Finance must be ensured, and the Federation will also consult with the government in July to prepare separate financial support measures for SMEs retaining skilled elderly workers."

Meanwhile, the Federation has held explanatory sessions on the system jointly with the Ministry of Employment and Labor for SME owners in major industries to provide accurate information and introduce the 'Skilled Elderly Employment Retention System,' and has also been promoting regional explanatory sessions for SME owners in key areas.

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