If You Work at a Small or Medium Enterprise, 'Lump Sum'... 'SME Employee Preferential Savings Deduction' Released

Jungjingong, Applications Accepted from the 22nd
Collaborative Policy Finance Product for Companies and Hana Bank

The Small and Medium Business Corporation announced on the 17th that it will start accepting applications from small and medium enterprises (SMEs) for the ‘Preferential Savings Deduction for SME Employees’ from the 22nd. The Preferential Savings Deduction for SME Employees is a new policy finance product collaboratively developed by the Ministry of SMEs and Startups, the Small and Medium Business Corporation, Industrial Bank of Korea, and Hana Bank to encourage long-term employment and asset formation among SME employees.

The main details include that employees working at SMEs who deposit between 100,000 KRW and 500,000 KRW monthly will receive corporate support funds amounting to about 20% of their deposits, along with preferential interest rate benefits from the partner banks. Additionally, tax benefits such as tax deductions at maturity will provide higher returns compared to general savings products.

Small and Medium Business Corporation

This product addresses the drawbacks of the existing Naeil Chaeum Deduction, which had high corporate burden and focused support on key personnel, allowing more employees to enroll. In particular, the Small and Medium Business Corporation designed the first bank-collaborative product within the Naeil Chaeum Deduction program to enhance subscriber benefits, offering up to 2.0% annual preferential interest rates and financial services.

The Ministry of SMEs and Startups and the Small and Medium Business Corporation signed a business agreement with Industrial Bank of Korea and Hana Bank last month and held a pre-subscription event with SME representatives wishing to participate. The enrollment procedure for the Preferential Savings Deduction for SME Employees requires SMEs and employees to agree on the monthly deposit amount in advance, after which SMEs must apply first through the Small and Medium Business Corporation’s Naeil Chaeum Deduction website starting from the 22nd.

Employees wishing to join can apply for the savings subscription via the Industrial Bank of Korea or Hana Bank websites or apps after the first corporate support fund payment is confirmed by the approved SME from the 24th. Subscription through bank branches will be available starting from the 28th.

Kang Seok-jin, Director of the Small and Medium Business Corporation, stated, “We will actively work to revitalize this new deduction product in cooperation with the Ministry of SMEs and Startups, Industrial Bank of Korea, and Hana Bank so that SME employees have higher satisfaction with their companies and SMEs can encourage long-term retention of talented personnel.”

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