Applying for SME Preferential Savings Program - An Easy Guide

The Small and Medium Business Corporation (SMBC), in collaboration with Hana Bank and Industrial Bank of Korea, operates a preferential savings program for employees of SMEs. This program helps employees build assets and encourages long-term employment at companies. Employees can save from 100,000 to 500,000 won per month, with the company providing an additional 20% of the contribution amount. With a preferential interest rate of 12% from participating banks, a maximum return of 5% is possible at maturity. The enrollment process involves the employee consulting with their employer, notifying the Small and Medium Business Administration, and then subscribing to the savings product through a bank. Young employees can receive a 90% income tax reduction, while general employees can receive up to 50%. Companies can also reduce their burden through corporate tax reductions or tax credits. This system provides substantial financial assistance to both employees and companies.

Learn More