Jeonju City Implements 'Jeonju-type Retirement Pension System' to Support Employment Retention

Nationwide Local Governments' First... Recruiting Participating Companies Until the 15th of Next Month

[Jeonju=Asia Economy Honam Reporting Headquarters Reporter Kim Han-ho] Jeonju City announced on the 25th that it is recruiting companies to participate in the ‘Jeonju-type Small and Medium Enterprise Retirement Pension Support Project (hereinafter Jeonju-type Retirement Pension),’ the first of its kind introduced by a domestic local government to help long-term employment retention of SME workers and guarantee their retirement life.

The recruitment period is from the 28th of this month to April 15th.

The Jeonju-type retirement pension system is a project that provides long-term incentives for skilled workers in SMEs and supports pensions by having employers, employees, and Jeonju City each contribute a certain amount to the fund to maintain employment.

In particular, for manufacturing SMEs with fewer than 30 employees planning to join the SME retirement pension fund system, workers who have been employed for more than two years can receive additional monthly contributions of 50,000 KRW each from the company and the employee to their retirement pension account, with Jeonju City providing an additional 50,000 KRW monthly support.

Jeonju City plans to support a total of 600 people, 200 per year over three years, and if the number of applicants is large, it plans to secure additional budget to provide support.

Also, this year, it will first implement the program for 200 workers in manufacturing SMEs with fewer than 30 employees, and after comprehensively analyzing satisfaction, it plans to gradually expand the support targets and industry sectors.

Jeonju City expects that once the Jeonju-type retirement pension system is established, it will create a strong employment safety net by fulfilling a social promise to maintain employment without layoffs even in times of crisis, following the declaration of a ‘No Layoff City’ win-win agreement where companies, workers, and local governments work together to protect jobs amid the economic downturn caused by the spread of COVID-19.

Prior to this, Jeonju City listened to proposals for administrative and financial support from local SMEs, including the SME Federation participating in the ‘No Layoff City’ win-win agreement, through frequent meetings to improve employment stability, and based on this, has been reviewing the introduction plan for the retirement pension system.

Mayor Kim Seung-su emphasized, “Jobs are a kind of social breakwater that protects individuals, families, and communities. If the breakwater collapses, our lives and livelihoods will all disappear,” and added, “To overcome this crisis, we will continue to implement bold policies for employment retention and stability, such as supporting retirement pensions for SME workers.”

Jeonju=Honam Reporting Headquarters Reporter Kim Han-ho stonepeak@asiae.co.kr

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