Job-S. O. S. (Sharing of Shinhan) 4U project
‘Job-S.O.S 4U Project’is a large-scale job creation project which has been set up on the basis of the resources of 37 billion won voluntarily contributed from the salaries of Shinhan Bank staffs. The project is composed of two programs, 'SME Employment Support Program' and ‘Social Enterprise Accounting Specialists Training and Employment Support Program’.
About You
About You
First Name
Il Seop
Last Name
Shin
Website
Your Organization
Country
South Korea
About Your Organization
Organization Name
SHINHAN BANK
Organization Website
Organization Phone
82-2-756-0506
Organization Address
120 2Ga Taepyung-Ro, Jung-Gu, Seoul, South Korea
Organization Country
South Korea
Organization Type
Private Institution
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Your solution
Name Your solution
Job-S. O. S. (Sharing of Shinhan) 4U project
Describe Your Solution
‘Job-S.O.S 4U Project’is a large-scale job creation project which has been set up on the basis of the resources of 37 billion won voluntarily contributed from the salaries of Shinhan Bank staffs. The project is composed of two programs, 'SME Employment Support Program' and ‘Social Enterprise Accounting Specialists Training and Employment Support Program’.
Country your work focuses on
South Korea
If multiple countries, please list them here. If your solution targets an entire region, please select it below
Region(s) your solution focuses on:
East Asia and the Pacific.
Range of turnover in your target firms, in USD
Less than $1 Million, $1-5 Million, $6-10 Million, $11-20 Million, $21-50 Million, More than 50 Million.
Average turnover in USD of your target firm
Number of employees in your target firms
5-24, 25-49, 50-74, 75-99, 100-150, More than 150.
Average number of employees of your target firm
not applicable
Specify the size, average and range of expected loans or investments in each target firm
The 'SME Employment Support Program' provides support for the payment of wages and salaries (up to a maximum of 12 million won a year a person) for up to five newly recruited employees by each individual firm and up to a maximum of 60 million won during one year for each such firm. As of the end of July 2010 support was provided amounting to 27.7 billion won for a total of 1,173 business firms.
The ‘Social Enterprise Accounting Specialists Training and Employment Support Program’ provides personnel costs and accounting specialist education costs for social enterprises recruiting accounting specialists. As of the end of July 2010, support of salaries amounting to 700 million won was provided to a total of 148 business undertakings.
What stage is your solution in?
Operating for 1‐5 years
Innovation
What makes your innovative solution unique?
This project has attracted great attention in that its resources of a planned 37 billion won were drawn by contributions of 6% of annual salaries of the entire staff of Shinhan Bank.
This program of employment support for SMEs has moderated firms' wage cost burden by direct and practical support of employees' wages in cash in contrast to other job creation proposals that are limited to indirect support such as 'youth internships' and the exemption on fees and commissions. In this way it is strongly differentiated from other firms' job creation plans.
‘Social Enterprise Accounting Specialists Training and Employment Support Program’ represents a support activity for expert manpower recruitment (employment) targeting social enterprises that is implemented for the first time in Korean private sector financial circles.
Shinhan Bank entered into an agreement with 'Ministry of Labor and then with an NGO, 'Work Together Foundation'. This forms a new model of support by way of the division of the wage support fund between the private sector (SHB) and the government and its vicarious business operation by an NGO organization. This has contributed to enhancing the accounting transparency of many social enterprises in the initial stages and has strengthened their management capacity.
How does your proposed innovation leverage public intervention in catalyzing private SME finance?
Not applicable
What barriers does your proposed solution address?
Lack of financial capacity.
If you checked any of these barriers, describe how your solution addresses them
In order to deal with the severe unemployment that emerged as a challenge for the nation from early 2009, the majority of public companies and large companies participated in job creation by way of methods such as 'youth internships' and 'simple 'employment maintenance. This form of support exhibited severe shortcomings including the ending of internships after a short period and renewed unemployment for the interns.
In the circumstances SMEs faced the problem of dealing with the two distinct tasks of improving productivity and cutting costs because of the financial crisis and the economic downturn.
Through the funding support of this proposal, Shinhan Bank sought to stimulate SMEs to heighten their productivity and competitiveness by encouraging firms requiring manpower but hesitant about recruitment because of a lack of funds.
By supporting the recruitment of regular employees rather than interns or contract staff, it contributed at one and the same time to alleviating the pressing national problem of unemployment and increasing the stability of SME employment. Furthermore it was conducive to the improvement of SMEs' weakened financial structure by greatly moderating their wage cost burden.
Impact
Provide empirical evidence of your proposed solution's success/impact at present. If your project is in the idea phase, please provide evidence that speaks to its potential impact
Through the SME employment support program, Shinhan Bank has created jobs for 2,980 people at a total of 1,173 SMEs. As of the end of July 2010, the amount of around 27.7 billion won was provided in support of wages.
In addition, the creation of positions for 148 accounting staffs at 148 social enterprises was made possible by ‘Social Enterprise Accounting Specialists Training and Employment Support Program’. It provided some 700 million won in the wages and salaries as of the end of July 2010.
A metal casting manufacturer, based in Cheongweon-gun , Chugcheong-bug-do, faced severe management problems in 2009 as a result of the financial crisis. Things came to a head because the company had to lay off two employees because of the ending of government support. Under these circumstances the company received support for the payment of wages on being selected as eligible for the ‘SME employment support program’ of Shinhan Bank and in 2009 it was able to achieve performance of 98% of its business plan for the year.
How many firms do you expect to reach?
Under the SME employment support program, wage cost support was provided to a total of 1,173 business firms as of the end of July 2010.
The wage cost and accounting education fee were provided for a total of 148 businesses by ‘Social Enterprise Accounting Specialists Training and Employment Support Program’ as of July 2010.
What is the volume of private SME finance you aim to catalyze?
‘SME employment support program’supports for the wages of five newly recruited full-time employees at each firm. Up to a maximum of 60 million won a year in wage costs is provided to each company by way of support for wages of up to 12 million won a year per head.
What time frame will be required to reach these targets?
-‘SME Employment Support Program’ : Creation of jobs for around 3000 people was targeted and this took around three months to reach with the creation of jobs for a total of 2,980 persons by August 5, 2009 following implementation April 21, 2009.
- 'Social Enterprise Accounting Specialists Training and Employment Support Program' : A target of the creation of 300 jobs for specialist accountancy staff at social enterprises was originally set, but only 148 jobs were created owing to firms' lackluster recruitment. It took around five months from July until December 2009 for their successful employment.
Does your solution seek to have an impact on public policy?
No
What would prevent your solution from being a success?
- SME employment support program : the greatest detrimental factor has been the moral hazards of the firms' owners. In the case of several firms, support was badly utilized and thought out because application for support was made on the basis of recruitment of the dependents, offspring relativists and in-laws of the proprietor. Additionally there were several cases in which support funds were paid when the employee covered by them had left the company without this being notified.
- Social Enterprise Accounting Specialists Training and Employment Support Program : After the ending of the period of support of wage costs, companies should shoulder the wage burden themselves and, consequently, they adopted a negative attitude towards recruitment because of doubts about shouldering the cost burden in future.
This Entry is about (Issues)
Describe the social impact of your innovation. Please include both numbers and stories as evidence of this impact
The staff shortages and the difficulties of finding a job as a result of the economic downturn caused by the financial crisis emerged as the most pressing problems facing Korean society. The situation was even more serious as regards the staffing problem of SMEs, which are much weaker financially than public companies and large companies.
The SME Employment Support Program encouraged the firms requiring additional manpower to recruit employees by supporting wage costs for one year. Therefore, it is assessed that it has contributed toward the resolution of the serious problems of youth unemployment and firms' labor shortages. In addition, it has contributed toward the stability of government at SMEs by supporting wage payments on a regular basis for newly-recruited staff employed full-time.
Along with this it was a first for a domestic financial institution in providing support for wage costs and education fees for training accounting staffs of social enterprises, founded in order to expand employment and social services for the underprivileged in a situation in which the majority of these companies were experiencing management difficulties because of a shortage of skilled human resources. This project, which created jobs for accounting staffs at 148 social enterprises, contributed toward putting the financial structure of these firms on a sounder footing and advancing their management capacity and it also assisted in the creation of jobs for more vulnerable groups in society and those alienated from it.
Sustainability
List all the funding sources that are required for the sustainability of this solution
Because resources for this project were arranged from the contribution of wages by the staff of Shinhan Bank, there are limits to which it can be pursued drawing on these identical resources.
Demonstrate how your proposed solution has the capacity to graduate from dependence on public finance. What is the time frame?
Not applicable
Demonstrate how your proposed solution will survive a potential loss of its largest private funding source
In that the entire amount of the support funds for this undertaking has the character of a charitable donation, being provided without charge, the question of loss of these funds does not arise.
Please tell us what kind of partnerships, if any, could be critical to the greater success and sustainability of your innovation
The SME employment support program is implemented in cooperation with Korea Federation of Small and Medium Business. Firms receive recommendations for support from the federation that possess a wealth of information concerning SMEs and know-how as to their needs. The incidence of improper use is minimized through close channels of communication with the Ministry of Labor and the Federation allows confirmation as to whether the employment of the employees for whom support funds are paid is being maintained.
‘Social Enterprise Accounting Specialists Training and Employment Support Program’ is conducted in keeping with an agreement with the Ministry of Labor that forms part of government and the 'Working Together Foundation', a non-governmental organization (NGO). Even more firms could be provided with benefits through this mechanism of joint support involving the private-sector Shinhan Bank and the public-sector Ministry of Labor.
The efficiency of the project targeting social enterprises is increased by having it carried out by the 'Working Together Foundation' that is well-versed in support for social enterprises.
Are there non-financial issues that could threaten the sustainability of your proposed solution?
There are no such matters.
Please tell us if your proposed solution aims to scale up through a high growth sector, expand immediately to multiple sectors, and/or scale up geographically
The objectives of this project are to alleviate firms' wage costs burden by providing cash support to cover a certain part of the wage bill for firms experiencing difficulties(hardships) because of funding problems or manpower shortages at the result of the economic crisis and thereby overcome the problem of youth unemployment by promoting employment.
Through this project jobs have been created at around 3000 SMEs and some 148 social enterprises. It takes the initiative in seeking to solve the problem of unemployment that confronts the whole nation through the presentation of this mold-breaking and practical proposal for direct cash support, the first of its kind within the domestic financial community. Thereby it has the effect of encouraging similar activities that make a contribution to society by other companies.
 | 90 weeks agoIl Seop Shin updated this Competition Entry. |
| 90 weeks agoIl Seop Shin updated this Competition Entry. |
| 90 weeks agoIl Seop Shin updated this Competition Entry. |
| 90 weeks agoIl Seop Shin submitted this idea. |
