"Looking for Model SMEs for Talent Development"

Ministry of SMEs designates outstanding companies improving productivity and profitability through investment in talent as 'Talent Development SMEs'

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Park Young-sun, hereinafter referred to as the Ministry) announced that it will accept applications from companies wishing to participate in the designation of 'Talent Development-Oriented SMEs' from the 21st of this month until the 16th of next month.

'Talent Development-Oriented SMEs' refer to excellent companies that exemplary nurture talents equipped with technical skills and research and development capabilities to improve productivity and profitability, and grow together with their employees. Since 2014, a total of 1,327 companies have been designated.

Companies selected as Talent Development-Oriented SMEs last year had an average monthly wage per employee of 3.09 million KRW, which is 10.9% higher than general SMEs, and invested more than three times as much in education and training costs, with an average annual expenditure of 226,000 KRW per employee compared to general SMEs, actively implementing compensation and investment for their staff.

Talent Development-Oriented SMEs also show excellent performance in indicators such as growth and profitability. As of 2018, the average sales of Talent Development-Oriented SMEs were 19.4 billion KRW, with a sales growth rate of 10.0%, an operating profit growth rate of 34.3%, and a net profit growth rate of 6.7%, demonstrating superior growth and profitability compared to general small and medium-sized manufacturing enterprises. Additionally, they contribute to job creation, including youth employment, with an annual employment growth rate exceeding 11%.

The application target for Talent Development-Oriented SMEs includes all SMEs except for general entertainment bars and similar businesses. A written and on-site evaluation of the CEO's commitment to talent development and efforts in education and training will be conducted, and companies with a total evaluation score of 70 points or higher will be selected as Talent Development-Oriented SMEs by a review committee. The finally selected companies will be provided with various benefits such as preferential treatment in SME job evaluations, eligibility to apply for job creation promotion funds, preferential designation as special military service companies, and discounts when participating in training programs of the Small and Medium Business Corporation.

Choi Won-young, Director of the Job Policy Division at the Ministry, stated, "Through the Talent Development-Oriented SME designation system, we hope that SMEs themselves will cultivate talent and foster a culture of developing professional personnel, establishing a virtuous cycle structure for corporate growth." He added, "We will strive to spread the atmosphere of voluntary talent development and performance sharing among SMEs."

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