Korean government announced earlier on June 1, 2018 that it adopted a new
program to provide cash grants for the eligible companies in an effort to
encourage companies to hire more youth employees and create more jobs, which is
named the Government Cash Grant Program for Additional Youth Employment (“청년 추가고용 장려금 지원사업” in
Korean). An eligible company may claim for cash grants in the amount of maximum
Won 9,000,000 per year and per person for the period of up to three(3) years
and this applies to the newly hired youth employee from March 15, 2018 (for the
youth employees hired between January 1, 2018 through March 15, 2018, cash
grants will be reduced to maximum Won 6,666,660 per year and per person).
of the program and eligibility
and medium companies having 5 or more employees are the target group for this
of youth employees who are newly enrolled in the statutory unemployment
insurance should be increased in year 2018 compared to December 31, 2017 to be
grant is provided from the Ministry of Employment and Labor (MOEL) for up to
Won 9,000,000 per year and per person (Won 750,000 per month and per person).
employees hired shall be in permanent position.
grant will be effective retroactively from January 1, 2018.
youth employees must be aged between 15 and 34.
grant benefit shall be applied for 3 years from the date of original hire and
an extension is not allowed.
program can be closed earlier this year if the MOEL reaches its annual quota
for year 2018 of 90,000 newly hired youth employees.
how to apply
company that is eligible and intends to apply for a cash grant benefit shall
submit to the district office of MOEL an application with proper supporting
documents (employment contract to verify permanent position, etc) no later than
6 months from the original hire date of the new youth employee. The application
should be filed on a monthly basis from the following month of the
original hire date and thereafter. As an exception, however, for the new youth
employee hired prior to May 2018, the application can be filed by November
30, 2018 and on a monthly basis thereafter. Companies may file the
application through the Employment Insurance website at www.ei.go.kr.
reviewed and approved that the company is qualified for the program by the
district office of MOEL, the cash grant will be paid within 14 days from the
date the application is filed