The South Korean government plans to more than double the training of practical workers in manufacturing AI to support the transition of small businesses to artificial intelligence. It will also enhance support for young workers in local small enterprises to address labor shortages.
The Ministry of SMEs and Startups announced on September 4 that it has established the "5th Basic Plan for Workforce Support in Small Enterprises (2026-2030)."
The government will focus on three main areas for workforce support: tailored training and supply based on field demand, creating a desirable working environment in small businesses, and strengthening infrastructure to alleviate job mismatches.
Initially, the training scale for practical workers needed for developing manufacturing AI solutions in small manufacturing companies will expand from 600 this year to over 1,600 next year. The duration of internships for small business employment will also increase significantly from three months this year to 12 months next year.
Next year, a new "Manufacturing AI Fellow Training Program" will be launched, targeting 500 individuals who will undergo specialized AI training at four major science and technology institutes, including the Korea Advanced Institute of Science and Technology (KAIST). Graduates will receive micro-credentials in manufacturing AI transition and will be connected to job opportunities in manufacturing companies. The government plans to increase the number of industry-specialized AI contract departments from 10 this year to 30 by 2030.
A Manufacturing AI Education Center will be established at the Small and Medium Business Training Institute, providing hands-on AI training to 10,000 employees of small businesses annually.
To address the shortage of research personnel in local small businesses, the proportion of hiring support allocated to non-capital region companies in the small business research personnel recruitment support program will increase from 50% to 60% this year. Small manufacturing companies in the AI sector will receive support for hiring up to two new research personnel.
Starting next year, the government will introduce a "Preferential Track for Young Workers in Local Small Businesses" under the Youth Future Savings program to support long-term employment and asset formation for young workers. The Youth Job Leap Grant currently provides up to 7.2 million won over two years for young individuals who have worked for more than six months in non-capital region small businesses, with plans to significantly increase the support limit next year.
To assist middle-aged individuals in re-employment, the criteria for businesses required to provide re-employment support services to those nearing retirement will gradually lower from 1,000 employees to 500 by next year and to 300 by 2029.
The government will also develop a comprehensive support roadmap for small businesses to effectively utilize foreign workers, covering everything from recruitment to residency and settlement.
To create safe and smart workplaces in small businesses, the financial support ratio for preventing accidents such as falls, entrapments, and collisions in workplaces with fewer than 10 employees will be increased to a maximum of 90%. Additionally, the scope of workplaces subject to the obligation to appoint safety and health managers under the Industrial Safety and Health Act will be expanded from those with 50 or more employees.
The Business Personnel Support Center, which provides job information for small businesses and connects job seekers, will increase to 34 locations this year and establish a cooperative system with local employment centers and universities.
A new initiative called "Youth Playground" will be established to introduce promising small businesses to young job seekers and provide advice from experienced entrepreneurs to those preparing to start their own businesses.
Next year, the government will open small business training institutes in Gwangyang, Jeollanam-do, and Jeonju, Jeollabuk-do, to support workforce training in region-specific industries. The Jeollanam-do institute will focus on semiconductors, aerospace, and petrochemicals, while the Jeollabuk-do institute will specialize in future vehicles and cultural content.
Noh Yong-seok, First Vice Minister of the Ministry of SMEs and Startups, stated, "I hope the 5th Basic Plan for Workforce Support in Small Enterprises serves as an opportunity for a transformation that creates small businesses where talent is sought and nurtured. We will work together with relevant ministries to ensure that talented individuals working in small businesses can open the door to an irreplaceable future for South Korea."
* This article has been translated by AI.
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