[Asia Exclusive] Naeil Chaeum Gongje Surpasses 4 Trillion Won, Supporting Core Personnel of SMEs

Contributing to Strengthening Competitiveness of Large Corporation Partners

Kim Hak-do, President of the Small and Medium Business Corporation, is being interviewed by Asia Economy on the 5th. / Photo by Moon Ho-nam munonam@

"Small and medium-sized venture businesses and their employees are the main drivers of our country's economy. We will continuously improve the Tomorrow Filling Deduction program to reduce wage and welfare gaps between large and small-to-medium enterprises and to firmly support the coexistence and growth of SMEs and key personnel." This was stated by Director Kim Hak-do at the "Tomorrow Filling Deduction Fund Surpassing 4 Trillion Won Cumulative Amount Commemoration Ceremony" held on the 10th at the Korea SMEs and Startups Agency (KOSME) headquarters in Jinju, Gyeongnam. He emphasized the role of SME venture employees in our economy and the importance of the Tomorrow Filling Deduction program that supports them.

Launched in August 2014, the Tomorrow Filling Deduction is a policy-based deduction program where SME business owners and workers jointly accumulate deduction funds at a certain ratio, and if the worker remains employed for more than five years, the accumulated funds are paid as performance rewards. As of October this year, the cumulative fund size has reached 4.2 trillion won, and the number of subscribers to the deduction program has surpassed 540,000.

This program also contributes to strengthening the competitiveness of SMEs collaborating with large enterprises. A representative case is the recent business agreement on the Tomorrow Filling Deduction signed between KOSME and KT. KOSME and KT agreed to work together to encourage long-term employment of non-face-to-face R&D personnel working at partner SMEs and to attract outstanding talent. KT will support companies subscribing to the Tomorrow Filling Deduction by providing 240,000 won per month per key personnel for the next two years. This effectively covers the entire deduction payment burden borne by the company. Since 2015, KOSME has been promoting the Tomorrow Filling Deduction collaboration project with 16 local governments, 19 public institutions, and 2 large and medium-sized enterprises. Through this, they have been alleviating companies' deduction payment burdens and supporting the long-term employment of 6,221 key personnel.

Director Kim said, "There was a survey result showing that subscribers to the Tomorrow Filling Deduction had higher employment retention rates compared to general workers, increased satisfaction with their companies, and decreased intention to leave. The subscribing companies were also found to have excellent growth and profitability indicators." He added, "To fulfill its role as a policy to attract excellent talent to SMEs, we plan to continuously expand education and welfare services so that subscribers can work at SMEs while developing themselves and enhancing their capabilities. We will also develop new deduction products that reduce the burden so that companies and workers can subscribe more easily."

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