1. sighs Agent K, Year 3: "I'm changing jobs... should I?"

"The paycheck is just passing through the bank..."

k, a third-year employee of a small business, sighs today. he sees his friends in big companies saving up for year-end bonuses and performance bonuses, but his bank account balance is flat. work is fun, but the thought of changing jobs makes me long for the day when I can buy a house and get married on this salary.

many small business employees have similar concerns to Mr. K. Frequent turnover of key employees is one of the biggest challenges for small businesses.

to solve this problem, the government and the Small and Medium Business Administration (SMBA) have come up with a new system. Good news for those who felt that the existing 5-year product was too long, the3-year SME Employee Preferential Savings Credithas finally been released!

2. what is the 3-Year SME Employee Savings Plan?

in a nutshell: If you put in 18 million won, the company will contribute 3.6 million won + &alpha

the structure of this system is simple and powerful.

(I) Employee: freely save from 100,000 to 500,000 won per month ;(+ Company) Company: contributes an additional 20% of the amount contributed by the employeeevery month;(+ Bank) Interest: the bank offers a high interest rate of **up to 4.5% per year**.

for example, what happens if I pay $500,000 per month for 3 years (36 months)?

  • my principal: 500,000 won x 36 months =18 million won

  • company contribution: $100,000 ( 20% of $500,000) x 36 months = $3,600,000

  • total principal: 18 million won + 3.6 million won =21.6 million won

  • add to this bank interest (up to 4.5%) + industrial complex interest...

  • at the end of 3 years, I will receive about 22.98 million won (pre-tax).

i only saved 18 million won, but the company's subsidy and interest will add up to nearly5 million won.

fact check: How is this different from the old Tomorrow's Savings Credit? (Important!)

many people are confused and ask, "Isn't this the same as the old 3-year Youth Tomorrow Credit?" It's completely different.

  • (Old) Youth Daily Savings Credit: It was for newly hired "young adults" and was heavily subsidized by the government.

  • (New) Employee Preferential Savings Credit: As the name suggests, it is for "current employees".

the biggest difference is that there areno age or years of service restrictions: those who were unable to join because they were over 34 years old, and "existing" workers who have been with the company for 5 or 10 years (even managers and team leaders!) can join.

3. am I eligible? a 1-minute checklist of the most important 'eligibility' questions

worker eligibility: full-time, contract, and short-term workers are all OK!

surprisingly, worker eligibility is pretty straightforward : if you're employed by a small or medium-sizedbusiness, you can join regardless of your employment status - full-time, contract, or short-term. there are also no age or tenure restrictions.

company eligibility: check the criteria in the Basic Act on Small and Medium Enterprises

however, the "company" you work for must meet the criteria.

  1. sMEs: Must fall within the scope of 'small and medium-sized enterprises' under the Basic Act on Small and Medium-sized Enterprises (total assets of KRW 500 billion or less and sales by industry)

  2. excluded sectors: Some sectors are restricted from joining, such as entertainment bars and meandering sectors.

the biggest hurdle is thatyour company has to decide to join the scheme and pay the 20% subsidy.

4. the 'real' money in my pocket after 3 years (complete breakdown of maturity receipts)

key: 3-year vs. 5-year maturity payout comparison table

depending on my savings capacity, I can choose between a 3-year and a 5-year term. with the introduction of the 3-year term, you have even more options.

maturity amounts may vary depending on preferential interest rates and other factors.

pro tip: 4.5% APY, just don't give it away (how to earn interest)

a lot of people sign up for a loan because they see the number "4.5% APR". however, the 4.5% rate is made up of a base rate of 2.5% + a preferred rate of 2.0%. if you miss out on the preferential rate of 2.0%, your interest income is cut in half.

Using IBK as an example, the conditions for earning the full 2.0% preferential rate are as follows

  • +1.0%P:Payroll transfers to this account ( over 500,000 won per month)

  • +0.5%P:Direct deposit of utility bills ( 2 or more per month)

  • +0.5%P:Use an IBK (credit/debit) card ( KRW 2 million or more per year)

make sure to check these 3 conditions when signing up and use it as your main bank to get the maximum interest after 3 years.

in-depth: How is the 229,000 won calculated? (Secrets of the interest structure)

if I pay 500,000 won per month for 3 years, my principal amount is 18 million won, the company's subsidy is 3.6 million won, and the total principal amount is 21.6 million won. the remaining 1.38 million won is 'interest'.

however, this interest is actually accumulatedin two separate places.

  1. 'My money' (18 million won): accumulated in an IBK/Hana Bank account, earning4.5% simple interest per year.

  2. "Company money" (3.6 million won): It's accumulated in an account with the Small and Medium Business Administration (SMBA ) and earnscompound interest at 2.33% per annum.

the two interest rates are combined to equal the maturity amount. it's a bit complicated, but it's easy to understand if you think of it as "the bank rolls my money, and the SMEs roll the company's money.

5. the A to Z of savings accounts (a must-read guide for working people)

don't run to the bank first! The "company" has to make the first move on this one.

step 1: (Employee) "Can my company do this?" → Talk to HR / Admin Support

the first step is to ask the right people in your company (HR, finance, your CEO), "Is my company planning to join the 3-year preferential savings plan for small and medium-sized businesses?"

step 2: (Company) Apply online at the Tomorrow's Savings Credit website

if the company decides to join, the company must first apply online at the Tomorrow's Savings Credit website. The Small and Medium Business Administration will review and approve the application.

step 3: (Employee) Open an account at IBK or Hana Bank

once the company's subscription has been approved and the company has made the first payment! The employee can then visitIBK or Hana Bankto open a dedicated account. (Two more commercial banks will be added later this year.)

6. [Most important] What happens if I don't complete the 3 years and leave the company?

this is the most important question: What happens if you leave your job within three years? depending on the reason for termination, the money you receive will be completely different.

Case 1. Voluntary departure or my own mistake (worker's fault)

if you terminate for "voluntary reasons," such as moving to a better company or quitting for personal reasons:

  • money I get:My principal amount (18 million won) + interest on my principal amount

  • what Idon't get:Company subsidy ($3.6 million) + interest on the company subsidy ( this money goes back to the company in full)

in other words, if you don't make it to 3 years, you'll have to give up the 3.6 million won + α that the company promised to match - hence the phrase "golden shackles". it's wise to join when you're confident you'll stay for 3 years.

Case 2. Company closure, bankruptcy, or advisory position (company's fault)

i join a company, but if the company closes down against my will (closure, bankruptcy) or I quit due to "company fault", which means they fire me (resignation):

  • the money I get:my principal (18 million won) + interest on my principal + ★ company subsidy (3.6 million won) + interest on company subsidy★

in other words, I get all the money!

this is the "hidden safety net" of the scheme. in the worst case scenario, the worker never loses anything, but rather walks away with all the money the company has saved for me.

7. how to convince your boss: What's in it for the company?

as an employee, it's hard to say, "Hey, boss, I want an extra $100,000 a month," but it's also a huge win for the company.

the corporate subsidy ($1.2 million per year) paid by the company for the employee isfully deductibleasan expense, reducing corporate taxes/income taxes. ontop ofthat, the company also receivesan income tax reduction of up to 90%.

in other words, the company can spend 1.2 million won on employee welfare, get back more than that in tax breaks, and encourage key talent to stay for the long term.

8. frequently Asked Questions (FAQ)

Q: Are there really no age or tenure restrictions? A : Yes, there are no age or tenurerestrictions. Unlike other products targeted at "young adults," this program is open to all employees of SMEs, even if they are over 34 years old or in their 10th year of employment.

Q: I've already completed two years of the Youth Next Day Credit, can I sign up again? A : Yes, you can. the two products are funded by different sources (government vs. company) and have different goals, so you can enroll in the new Preferred Savings Plan even if you've already expired.

Q: i can't afford 500,000 won per month, can I change the amount midway through? A : No, you are committed to the amount you set when you sign up for three years, so we recommend starting with a 'safe' amount (between 100,000 and 500,000 won) that you will never cancel.

Q: What if my company refuses to sign up? A : Yes, unfortunately, this is a "company" program. however, we recommend that you try to convince your HR team or CEO that it's a great deal for the company, based on point 7 above ("What's in it for the company").

9. conclusion: 3 years of commitment, $3.6 million + α bonus

the 3-Year SME Employee Savings Plan isn't just a high-interest savings account.

it's a **participatory matching fund** in which your company contributes an additional 20% of your savings (3.6 million won), the bank pays you 4.5% interest, and the government gives your company tax breaks, all backed by your promise of "three years of service.

if you're sure you're going to stay at your current job for the next three years, you'd be doing yourself a disservice not to take advantage of this program. So why not take a look at the benefits you're entitled to before you start thinking about changing jobs?

ask your HR or business support team, "Does my company have a 3-year SME employee savings plan?" today!

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