Speaking on youth unemployment and the difficulties small and medium-sized businesses face in hiring and retaining new employees, Gyeonggi Governor Nam Gyeong Pil unveiled a number of policy proposals that would seek to resolve both issues. (Image: Yonhap)
SUWON, Aug. 17 (Korea Bizwire) – Speaking on youth unemployment and the difficulties small and medium-sized businesses face in hiring and retaining new employees, Gyeonggi Governor Nam Gyeong Pil unveiled a number of policy proposals that would seek to resolve both issues.
There were three chief proposals for those ages 18 through 34 in his statement, generally titled as ‘Matching’, ‘Subsidizing’ and ‘Welfare Points’. The intended policies would only cover residents of Gyeonggi and those who have worked a minimum of 36 hours a week for at least 3 months. The application of the policies will also depend on the industry, and recipients cannot be registered to more than one program.
Under the first proposal, ‘Matching’, the government would match monthly deposits of 100,000, 200,000, or 300,000 won over a period of ten years. The provincial government aims to have 10,000 enrolled in the program by 2028. The goal of this policy would be to aid young workers in putting together a nest egg of 100 million won after 10 years.
The second, ‘Subsidizing’, is specifically intended for employees at small and medium-size manufacturing businesses and will provide said employees with monthly deposits of 300,000 won over a period of two years. The goal is for 20,000 to be enrolled starting this year until 2020, with wages increasing by 15 percent as a result.
Lastly, ‘Welfare Points’ will see the government distribute up to 1.2 million won in welfare points to 100,000 employed youth. The termination deadline of the policy was announced to be 2019, but the date being changed remains a possibility.
With an eye on November as the starting point, the province will earmark 19.5 billion won for its proposals in its autumn budget report to the legislature. With 166 billion won planned for next year, all told the province has budgeted for 625 billion won in expenses throughout the life of the policies.
A major reason for understaffing issues at small and medium-size businesses within Gyeonggi was low pay, according to panel discussions sponsored by Governor Nam. The province’s businesses have a considerably higher rate of vacancies at 27.1 percent compared to the national average of 20.6 percent.
“The implementation of these policies will encourage staffing of long-term employees at small and medium-size business within the province, and will take a step further in increasing youth employment,” declared Governor Nam.
“The implementation of these policies will encourage staffing of long-term employees at small and medium-size business within the province, and will take a step further in increasing youth employment,” declared Governor Nam. (Image: Yonhap)
Lina Jang (linajang@koreabizwire.com)
