Lee Nak-yeon, Expanding Mid-sized Companies from 5,400 to Over 7,000 in 5 Years to 'Create Jobs'

Proposal for Support Measures for Mid-sized Companies at the 'Youth Employment Expansion Plan' Forum on the 26th
Incentives Including 60% Support for Nominal Wages Under Youth Employment Tax Credit for 4 Years

[Asia Economy Reporter Oh Ju-yeon] Lee Nak-yeon, former leader of the Democratic Party of Korea, announced that he will nurture mid-sized companies as the core of industrial policy by expanding the number of mid-sized companies, currently 5,400, to over 7,000 by 2026 to ensure sustainable growth of the national economy and create quality jobs for youth.

On the 26th, Lee attended the "Mid-sized Companies Youth Job Diagnosis and Youth Employment Expansion Measures Forum," co-hosted by Representative Jung Tae-ho and the Ministry of Trade, Industry and Energy, and stated, "With the successful conclusion of the Korea-US summit, the Korea-US relationship will be upgraded from a security alliance to a value chain alliance," adding, "As the economic partnership between Korea and the US strengthens, extensive cooperation centered on semiconductors, electric vehicle batteries, vaccines, and pharmaceuticals will take place, opening opportunities for our mid-sized companies."

[Image source=Yonhap News]

Lee predicted, "Mid-sized companies are key players in the materials, parts, and equipment industries that determine the competitiveness of our manufacturing sector and will be the biggest beneficiaries of the Korea-US value chain alliance," and proposed policies to expand youth employment through support for mid-sized companies facing difficulties due to workforce supply-demand imbalances.

He said, "We will provide various tax benefits and incentives to mid-sized companies, the backbone of our economy, to support investment and job creation," and announced, "I propose a youth employment increase tax credit policy that supports up to 60% of nominal wages for four years for companies increasing employment, regardless of company size or region."

He added, "We will discuss with the government the expansion of the youth additional employment incentive by increasing subsidies for new hires to 10 million KRW per person annually for four years."

Lee also promised legislative efforts to support bold investments by companies preparing for the new economic system. He stated that he will strive for the prompt passage of the Basic Act on Service Industry Development, the Act on Promotion of Industrial Digital Transformation, and the amendment to the Green Industry Act, which are currently pending in the National Assembly.

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