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Abolishment of Young Employee Savings Product for Small and Medium-Sized Businesses Sparks Criticism and Controversy

Product for raising lump sum money for young people working in small and medium-sized businesses

Starting next year, we will not accept new subscriptions.

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The ‘Young Employee Tomorrow Filling Deduction Plus’, a savings product designed to help young people working at small and medium-sized businesses save a lump sum, is in the process of being abolished. There is criticism that this is the result of the government and politicians saying, “We sympathize with the pain of young people working in small and medium-sized businesses,” but ignoring practical support measures.

According to Maeil Business Newspaper coverage on the 25th, the budget for the Naeil Filling Deduction Project, which is under the jurisdiction of the Ministry of SMEs and Startups, passed the plenary session of the National Assembly on the 21st at 121.7 billion won, a decrease of 86.2 billion won compared to this year. It was organized to support only this year’s subscribers, and it has been confirmed that it will be retired in a few years without accepting new subscribers from next year.

The Ministry of SMEs and Startups was in the position of abolishing the project due to worsening financial conditions and an increase in the early cancellation rate. In response, the Democratic Party requested an increase of 90 billion won to continue the project.

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However, as the deadline for processing the budget passed, the Democratic Party, which became impatient, focused more on local currency and youth passes, which were called the ‘Lee Jae-myung’s budget’, and in the end, the Tomorrow Filling Deduction Project became a victim of ‘give and take’ between the ruling and opposition parties. It is reported that the Ministry of SMEs and Startups is not planning any new projects related to this.

The Naeil Filling Credit Project, introduced in 2018 during the Moon Jae-in administration, targets young people who have worked for more than six months in the manufacturing and construction industry with less than 50 employees. This is a product in which if a young person accumulates 6 million won over a 3-year accumulation period, the government and the company will each add 6 million won, for a total of 18 million won.

People Power Party lawmaker Lee Jong-bae, a member of the National Assembly’s Trade, Industry, Energy, Small and Medium Venture Business Committee, said, “We need to support and encourage young people to get jobs at small and medium-sized businesses and stay employed for a long time, but they are giving up on various welfare projects that have legal grounds for support, such as shared lodging facilities.” He pointed out, “Even the projects that exist are being abolished.”

2023-12-25 05:53:37
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