A government-backed savings program designed to help employees at small and medium-sized enterprises build assets and stay in their jobs longer has surpassed 40,000 subscribers.
The Korea SMEs and Startups Agency (KOSME) said on the 3rd that it held the third meeting of the Preferential Savings Deduction Program's inter-agency council on the 2nd at the SME Distribution Center in Seoul's Yangcheon District, marking the milestone and discussing ways to expand the program. Attendees included Cho Han-gyo, KOSME's executive director for workforce development; Oh Ji-young, head of the workforce policy division at the Ministry of SMEs and Startups; and deputy presidents of the four partner banks — IBK Industrial Bank of Korea, Hana Bank, KB Kookmin Bank and NH Nonghyup Bank.
The program is a policy finance product operated jointly by the ministry, KOSME and the banking sector. Employees save between 100,000 won and 500,000 won a month, their employers add 20% of that amount each month, and the banks provide a preferential interest rate of up to 4.5%. The product launched in October 2024.
KOSME said it plans to build on the 40,000-subscriber mark to establish the program as a fixture supporting asset accumulation and long-term employment at smaller companies. Participants at the council agreed to pursue subscriber growth by developing and expanding cooperative savings products involving mid-sized and large companies through bank networks, strengthening collaboration between the partner banks' regional headquarters and KOSME's regional offices and branches, holding an event to mark 50,000 subscribers, diversifying employer contribution rates, and stepping up promotion and sales activity at each bank.
The agency also plans to revise the product structure so that companies can choose their contribution rate based on their financial capacity. Under the plan, the employer contribution rate, currently fixed at 20%, would be set at either 20% or 40%.
"Passing 40,000 subscribers reflects the active cooperation of those who share the program's purpose of supporting asset accumulation and long-term employment for SME workers," Cho said. "We will continue to work with the ministry and financial institutions to boost enrollment and expand the program."
