[Regional SME Workforce Solutions] ④ A Realistic Starting Point: Resolving the 'Mismatch'

Connecting Job Seekers and Regional SMEs Through Platforms

Transitioning Self-Employed and Small Business Owners Who Have Closed or Suspended Operations

Utilizing Women with Career Breaks

Editor's NoteThe biggest challenge facing regional small and medium-sized enterprises (SMEs) is securing a workforce. Complaints about the difficulty of finding people to work are heard across all industries and regions. This issue cannot be viewed merely as a recruitment problem for individual companies. Creating quality jobs in regional areas is central to balanced growth between central and local governments. SMEs, which account for over 80% of total employment, must underpin these jobs. Ultimately, the solution to the structural issue of regional extinction lies in how regional SMEs can overcome the major hurdle of attracting talent and establish themselves as providers of quality workplaces. The Asia Business Daily explores possible solutions based on stories from the field of regional SMEs.

Regional SMEs are trapped in a triple dilemma: population decline and regional extinction, low growth and loss of vitality, and a lack of infrastructure. The foremost agenda for shifting toward region-led growth driven by SMEs is to stimulate workforce inflow. Among both SME representatives and experts, there is a growing consensus that resolving the mismatch between job seekers and regional SMEs can serve as a realistic starting point.

According to the recent "Regional SME Growth Strategy Proposal" released by the Korea Federation of SMEs, the SME sector has identified resolving mismatches between job seekers and regional SMEs through a "strong SME platform" as a core policy initiative to attract talent to regional companies. Despite regional SMEs reporting difficulties in securing talent, the mismatch persists, with one out of three young people unable to find work and remaining unemployed.

To address this mismatch, the Korea Federation of SMEs has operated the "Truly Excellent Strong SME" platform since 2021. The aim is to provide job seekers with information about outstanding SMEs and facilitate employment matching so that talent can flow into regional SMEs. As of last year, information on more than 11,000 strong SMEs was available on this platform. The federation selects these companies based on overall competitiveness derived from financial statements and attractiveness to job seekers, using data from 2 million SMEs.

Job seekers can receive information on preferred jobs in the form of a map and search for desired opportunities using customized filters. AI-based job matching is also provided. The federation has proposed measures such as offering incentives to both regional SMEs and job seekers when employment is realized through this platform, in addition to promoting recruitment fairs in connection with it.

Employees are manufacturing car seats on the production line at Hyunjin Hightech in Gwangju. Photo by Cheolhyun Kim

The Korea SMEs and Startups Agency is also working to resolve mismatches by operating an online-based "job matching platform" and a "matching support center" that provides specialized employment counseling, thus supporting the recruitment and employment linkage between SMEs and job seekers. Last year, this resulted in connecting more than 1,700 job seekers to over 1,000 SMEs, demonstrating clear results. For example, Hyunjin Hightech, an automotive parts company located in Gwangju, found it difficult to fill workforce gaps through direct recruitment alone, so it requested candidate recommendations from the matching support center, which enabled the company to hire 22 people over the past three years. Minyoung Seo, an executive at the company, explained, "We recruit candidates with a strong willingness to work who are introduced by the matching support center, and we help them settle into their roles through a mentoring system."

Experts have also assessed that resolving mismatches will serve as a starting point for addressing the workforce challenges of regional SMEs. Chaewoon Lim, professor emeritus at Sogang University's School of Business, said, "It is important to address the mismatch between regional SMEs, which struggle to find workers, and job seekers facing employment difficulties." He added, "Potential solutions include transitioning self-employed individuals and small business owners in regional areas—especially those who have suspended or closed their businesses—into SME employees, and utilizing career-interrupted women by offering remote or flexible work arrangements."

Series Order: Regional SME Workforce Solutions

[Regional SME Workforce Solutions] ① Building a virtuous cycle of local education, employment, and settlement

[Regional SME Workforce Solutions] ② Designing 'work-life balance'... Focusing on institutional change over money

[Regional SME Workforce Solutions] ③ Utilizing foreign talent is not a choice, but a necessity

[Regional SME Workforce Solutions] ④ The realistic starting point: resolving the 'mismatch'

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