Companies to be allowed to choose between 20% and 40% contribution rates for the 'Preferential Savings Plan for Employees of SMEs'

[Financial News] The Korea SMEs and Startups Agency (KOSME), the Ministry of SMEs and Startups, and partner banks are pursuing a restructuring of the product to allow companies to choose between a 20% and 40% corporate contribution rate for the 'Preferential Savings Plan for Employees of SMEs.'
KOSME announced on the 2nd that it held the third Preferential Savings Plan Institutional Council meeting in Seoul, attended by officials from the Ministry of SMEs and Startups, Industrial Bank of Korea, Bank of Hope, KB Kookmin Bank, and Nonghyup Bank, and discussed measures to promote enrollment.
The Preferential Savings Plan is a product launched in October 2024 through cooperation among the Ministry of SMEs and Startups, KOSME, and financial institutions to support asset building and long-term employment for employees of small and medium-sized enterprises (SMEs). When an employee saves 100,000 to 500,000 won per month, the company provides an additional 20% of the employee's contribution, while the bank offers a preferential interest rate of up to 4.5% per year. An employee who saves 500,000 won per month can receive approximately 39.8 million won at maturity after five years, based on an annual interest rate of 4.5%.
The participating organizations plan to improve the product structure so that companies can choose a contribution rate according to their financial circumstances. Currently, the rate is fixed at 20% of the employee's contribution, but the plan is to allow companies to choose between 20% and 40% in the future.
They also discussed ways to identify and expand mutually beneficial cooperative savings products linked to mid-sized and large companies by utilizing banks' sales networks, as well as ways to strengthen cooperation between the regional headquarters and branches of partner banks and those of KOSME.
They also considered strengthening promotional and sales activities by each bank and holding a commemorative event when the number of subscribers reaches 50,000. As of that day, the number of subscribers to the Preferential Savings Plan had exceeded 40,000.
Cho Han-kyo, executive director of workforce development at KOSME, said, "The fact that the number of subscribers to the Preferential Savings Plan has exceeded 40,000 is the result of employees of SMEs identifying with the program's purpose of supporting asset building and long-term employment and actively cooperating." He added, "We will continue to promote enrollment and expand the program through cooperation between the Ministry of SMEs and Startups and financial institutions."
[email protected] Kim Hyun-chul Reporter