Young Adults Investing 3 Million Won: Naeil Chaeum Deduction to Support 20,000 More Participants

Additional Support Projects with Supplementary Budget to Start Tomorrow... Excluding Long-term Unemployed and Others

At the ceremony commemorating the 5th anniversary of the launch and the 100,000th maturity of the Youth Tomorrow Filling Deduction held on the 25th of last month, Park Hwajin, Vice Minister of Employment and Labor (far right), and Kim Hakdo, President of the Small and Medium Business Corporation, among others, are seen taking a commemorative photo. (Photo by Jungjingong)

[Sejong=Asia Economy Reporter Moon Chaeseok] This year’s additional support project for the Youth Tomorrow Employment Deduction, which allows young people employed at small and medium-sized enterprises (SMEs) to accumulate a certain amount over two years and secure a lump sum with support from companies and the government, is set to begin.

The Ministry of Employment and Labor announced on the 7th that starting from the 8th, it will implement the additional support project for the Youth Tomorrow Employment Deduction using the second supplementary budget.

The Youth Tomorrow Employment Deduction is a program where young people employed at SMEs accumulate 3 million KRW over two years, and with support from companies and the government, they can form assets worth 12 million KRW. From the SME perspective, it has the effect of encouraging long-term retention of young talent.

This year, the number of new beneficiaries supported through the main budget was 100,000, but due to early closure, an additional 20,000 beneficiaries will be supported using the supplementary budget.

The Ministry of Employment and Labor stated regarding the additional support project, "It will be operated so that benefits are concentrated on young people newly entering the labor market and SMEs, where the need for support is high, within the limited budget."

Long-term unemployed individuals are excluded from the support target. Mid-sized companies are also not eligible for support. The wage requirement cap for subscribers has been lowered from 3.5 million KRW to 3 million KRW per month.

Since the introduction of the Youth Tomorrow Employment Deduction in July 2016 until August this year, the cumulative number of subscribers reached 486,435. The retention rate of subscribers working for 1 to 2 years or more was about 30 percentage points higher than the average for young people employed at SMEs.

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