By Choi Kyong-ae
From October, companies will be given between 5.4 million-7.2 million won in subsidies per year for each hiring of a young worker.
The Ministry of Finance and Economy (MOFE) announced on Wednesday that the subsidy is designed to solve the youth jobless problem. The subsidy will be given for up to three years. The subsidy will be 5.4 million won for large firms each time they hire one young worker and 7.2 million won for small companies.
In a report to President Roh Moo-hyun at Chong Wa Dae, Deputy Prime Minister and Finance-Economy Minister Lee Hun-jai said the government will create a 1 trillion won ($865 million) investment fund in a bid to help businesspersons start companies.
In addition, a special fund scaled at 50 billion will be created to expedite the restructuring of troubled small- and medium-sized companies.
Companies will be able to use a ``management consulting’’ coupon to get advice
on how to run their companies by visiting an accounting or
consulting firm of their choice, with the government picking up 60
percent of the cost. In the past, companies were limited in the
choice of companies they could turn to for advice, the MOFE said.
The Small and Medium Business Administration will set aside 20 billion won for the purpose.
Another measure being considered is the network loan system in which some 19,000 SMEs will be able to get loans from banks prior to the delivery of ordered products. It is designed to help small firms ease cash flow problems as they usually receive money after delivery.
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