Gangwon-do, First Nationwide Implementation of 'Employment Social Responsibility System'

Interest-Free Loan of 30 Million KRW for Hiring One Person
30% Incentive Support on Loan Amount for Maintaining Employment for 3 Years

'Gangwon-do Type Employment Social Responsibility System' Employment Creation Maintenance Fund Support Business Agreement [Provided by Gangwon-do]

[Asia Economy Reporter La Youngcheol] Gangwon Province is the first local government in the country to promote the 'Gangwon-type Employment Social Responsibility System' to solve the unemployment problem.

According to the province on the 15th, the 'Gangwon-type Employment Social Responsibility System' is divided into the 'Regular Employment Support Project,' which supports 1 million KRW per person per month for one year upon new hiring, and the 'Employment Creation and Maintenance Fund Support Project,' which provides interest-free loans of 30 million KRW per person and supports 30% of the loan amount as a subsidy if employment is maintained for three years.

The 'Employment Creation and Maintenance Fund Support' project will be officially implemented starting today with agreements made with commercial banks and related organizations such as the Gangwon Credit Guarantee Foundation.

It supports employment and job retention for up to 6,500 people with a scale of 200 billion KRW for small and medium-sized enterprises and small business owners suffering from management and employment difficulties due to COVID-19.

To alleviate the debt repayment burden on companies, interest and guarantee fees are fully exempted for two years, and any small and medium-sized enterprise or small business owner in the province with a credit rating of B or higher can apply by visiting the Gangwon Credit Guarantee Foundation.

The loan period is 10 years (3 years grace period, 7 years installment repayment), and support can be received through commercial banks in the province after obtaining a guarantee certificate from the Gangwon Credit Guarantee Foundation.

The province will invest a total project cost of 388.8 billion KRW in this project and expects to create employment for 16,500 people.

Choi Moon-soon, Governor of Gangwon Province, said, "'The Employment Creation and Maintenance Fund Support Project' is a stable funding support system linked to employment, providing liquidity expansion for companies and guaranteeing stable jobs for job seekers," adding, "It will be a project that overcomes the management difficulties of small and medium-sized enterprises and small business owners and ultimately leads to employment stabilization."

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