Korea SMEs Agency, Gunsan sign MOU for youth co-savings program
Workers contribute 100,000 won a month; agency and city top up the rest
Initiative comes ahead of Hyundai Motor Group's 9 trillion won Saemangeum investment and Gunsan shipyard restart
The Korea SMEs and Startups Agency signed an MOU with Gunsan on Wednesday to launch a co-savings program aimed at helping local small and medium-sized enterprises retain young workers.
Under the program, a young worker at a small or mid-sized company in Gunsan who saves 3.6 million won ($2,600) over three years will receive 12.96 million won in principal — plus compound interest — at maturity, with the company, the agency and the city collectively contributing an additional 9.36 million won.
The program is open to workers aged 39 or under employed at companies with three or more employees based in Gunsan. Each worker contributes 100,000 won per month; the employer adds 80,000 won, the agency 80,000 won and the city 100,000 won, bringing the total monthly contribution to 360,000 won.
The agency's long-term co-savings scheme allows business owners and key employees to jointly accumulate savings paid out to workers as performance bonuses with compound interest. The collaborative version signed Wednesday has local governments and the agency covering part of the employer's contribution, reducing the financial burden on companies.
The agency's focus on workers under 40 in Gunsan is closely tied to large-scale industrial investment planned for the area, including the Saemangeum development zone. Hyundai Motor Group signed an agreement in February to invest a total of 9 trillion won in Saemangeum to build an AI data center, a robot manufacturing and parts cluster, and a water electrolysis plant. At the time, the government and Hyundai Motor Group projected the investment would create roughly 70,000 jobs.
The Gunsan shipyard is also moving toward a restart. J-Ocean Heavy Industries, established by Eco Prime Marine Pacific — the largest shareholder of HJ Shipbuilding & Construction — signed a definitive asset transfer agreement with HD Hyundai Heavy in June for the Gunsan shipyard. Once the acquisition is complete, the yard is expected to resume full-vessel construction, which has been suspended since 2017.
The Korea SMEs and Startups Agency and Gunsan believe the program will help local small and medium-sized enterprises secure young talent amid large-scale investment and industrial restructuring. The initiative is designed to encourage young workers to stay in their jobs long-term while narrowing the workforce recruitment gap between large corporations and local smaller firms.
"Attracting and retaining talented young workers is a core challenge for boosting the competitiveness of local small and medium-sized enterprises and revitalizing regional economies," said Cho Han-gyo, the agency's executive director for human resources development. "We hope this becomes a foundation for young people in Gunsan to build their futures locally and for workers and businesses to grow together."
The agency plans to expand its collaborative co-savings programs and preferential savings support for employed workers in partnership with local governments, with the goal of helping small and medium-sized enterprises secure talent and encouraging young people to put down roots in their regions.
hong@heraldcorp.com
