Chungnam to Provide '1 Billion KRW Holiday Bonus' to SME Employees

[Asia Economy (Hongseong) Reporter Jeong Il-woong] Chungnam Province will provide holiday bonuses to employees of local small and medium-sized enterprises (SMEs) through the Chungnam Joint Labor Welfare Corporation (hereinafter referred to as the Corporation). The holiday bonuses will be paid to 1,429 employees of 86 local SMEs, with up to 800,000 KRW per person, totaling 1,040 million KRW.

According to the province on the 6th, the Corporation was established as a joint venture between the province and city/counties to support the welfare of employees working in SMEs and to resolve labor market polarization. Currently, Corporations No. 1 to 3 are operating, with the province collaborating with six cities/counties: Asan, Boryeong, Gongju, Yesan, Seocheon, and Taean.

The Corporation utilizes funds raised from contributions by the province, city/counties, SMEs, and government subsidies as welfare expenses for workers. For example, the contributions and subsidies paid this year, as of the end of last month, amount to 285.6 million KRW from the province, 571.6 million KRW each from city/counties and SMEs, and 1,067.85 million KRW from the government.

The total annual welfare expense per worker provided through this is 1 million KRW, with 400,000 KRW each for Lunar New Year and Chuseok, and 200,000 KRW for Labor Day.

This Chuseok, Corporation No. 1 will pay 139.2 million KRW to 348 employees of 16 companies, 400,000 KRW per person before the holiday, and Corporations No. 2 and 3 will pay a total of 864.8 million KRW to 1,081 employees of 70 companies, including the welfare bonus from last Lunar New Year, at 800,000 KRW per person.

Jo Mo-yeon, Director of the Job and Labor Policy Division of the province, said, “The payment of holiday (welfare) bonuses will practically strengthen workers’ welfare, which will lead to increased work motivation. The province will continue to prepare and implement various measures to improve the welfare level of workers in local SMEs.”

Meanwhile, the province plans to establish Corporations No. 4 to 6 next year in three counties: Cheongyang, Hongseong, and Buyeo, with the goal of having all cities and counties in the province participate in establishing and operating the Corporation in the future.

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