The Korean government subsidizes more than KRW 10 million in real income to young people who are employed by small and medium-sized enterprises, and deducts corporate tax and income tax for five years for young entrepreneurs. The "eco-generation" of children of the `baby boom` generation is a drug prescription based on the idea that youth unemployment can become a national disaster if 390,000 new employees enter the job market.

The government also plans to organize a supplementary budget of KRW 4 trillion in order to expand the youth employment, but it is also planning to minimize the financial burden by putting the world surplus and the KRW 2 trillion fund into the budget

The government confirmed this at the Cheong Wa Dae presidential election by President Moon Jae-in on March 15 at the Cheong Wa Dae report meeting and the 5th Jobs Committee meeting.

President Moon said, "Young people are clamoring for employment cliffs. Small and medium-sized companies are suffering from labor shortage." He added, "We must increase the support for small and medium-sized enterprises to create new employment opportunities." did. President Moon said, "Although it is a temporary measure, we have focused on activating the private employment market." "With the public sector jobs set for last year and the budget for this year, the measures will be implemented and settled promptly, did.

Also, the government will give full support to mid-career workers and new employment sites to expand youth employment. First, the government supports KRW 9 million, which is one-third of the annual salary per capita, if small and medium-sized enterprises newly hire a full-time employee, employment crisis due to restructuring Provide additional KRW 5 million to SME workers.

Full taxation and financial support for working youth is also added. If a young person aged 34 or younger is employed by a small business, he will be exempted from income tax for 5 years and lend money to a monthly deposit up to KRW 35 million for 4 years (1.2%). If the new employee gets 6 million won, he can pay KRW 30 million (KRW 6 million for the company + KRW 18 million for the government) after paying KRW 100,000 for the monthly transportation expenses to the SMEs who have poor transportation conditions.

The benefits of young entrepreneurs have also increased dramatically. We will deduct corporate tax and income tax for 5 years and give the same level of tax benefits to all founders with annual sales of less than 48 million won. By nature, it provided 10 million won worth of `Successful Loan` to 10 thousand life innovation type entrepreneurs, and received 50 million won additional loan.

However, economic experts believe that the government`s measures to support young people`s employment, including financial support, are not enough to improve the employment market in the long run. Park Chang-gyun, professor of economics at Chung-Ang University, mentioned "There is a limit to solving SMEs` recognition of poor treatment due to short-term financial support." In the long run, companies should make jobs and expand high-value-added jobs.

Although it is an epoch-making financial support, there is a limit to the improvement of the job quality and the quality of the job without the structural problem solving as the industrial structure based on the manufacturing basically limits the creation of additional jobs.

By Kwon Dae Kyung kwon213@


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