Jeju SME workers to get asset-building boost as KOSME, NH NongHyup Bank sign regional MOU

The Korea SMEs and Startups Agency and NH NongHyup Bank are rolling out a preferential savings program for small and medium-sized enterprise workers across regional hubs, starting with Jeju. The push aims to bring a policy finance product designed to encourage long-term employment and asset-building at SMEs closer to workers on the ground.

The two institutions signed a memorandum of understanding Wednesday at NH NongHyup Bank's Jeju headquarters, formalizing cooperation between their respective Jeju regional offices on the "SME Employee Preferential Savings Mutual Aid" program.

The agreement extends a headquarters-level MOU into hands-on regional collaboration. Beginning with their Jeju offices, the two sides plan to broaden enrollment in the preferential savings program among local SME workers and expand financial and workforce support cooperation to regional hubs nationwide.

KOSME noted that the partnership carries particular significance because NH NongHyup Bank is the only participating bank with a regional headquarters in Jeju, making it well-suited for locally rooted cooperation.

Under the MOU, the two institutions will jointly promote the savings program, identify and recruit eligible SME workers in the region, and provide financial products and loan support to promising small businesses.

The SME Employee Preferential Savings Mutual Aid program is a policy finance product jointly operated by the Ministry of SMEs and Startups, KOSME and the financial sector to support asset-building and long-term employment among SME workers. The ministry introduced the product in 2024, citing the need to encourage workers to stay at small businesses longer and ease labor shortages.

Workers who save between 100,000 and 500,000 won (about $329 at the upper end) per month receive an additional contribution from their employer equal to 20 percent of their monthly deposit, while participating banks offer a preferential interest rate of up to 4.5 percent. A worker saving the maximum 500,000 won per month would receive approximately 39.8 million won at maturity after five years, based on the 4.5 percent rate.

"This agreement is meaningful in that it lays the groundwork for expanding the preferential savings program at the local level through a regional cooperation model," a KOSME official said. "We will continue to strengthen support for SME workers by deepening collaboration with our partner banks."