Internship Program to Foster Young Entrepreneurs

A government-run internship program for fostering young entrepreneurs will start at the end of the month, the government said yesterday.

Young people who intern at venture companies to learn how to start a business will get up to 960,000 won (822 U.S. dollars) in government subsidies per month for the first six months and 650,000 won (556 dollars) after starting a business.

The previous internship program focused on raising the number of regular workers at smaller companies, and was changed to encourage entrepreneurship and startups among young people.

The Strategy and Finance Ministry and the Labor Ministry said an “internship program for starting a business and creating a job” and select institutions will take charge of the program by Feb. 15. Recruitment of interns will start from the end of the month.

Creating a job through self-employment refers to a concept often used for starting a one-person company in the cultural, information technology, and contents industries.

Under the project, the four sectors can hire entrepreneur interns: venture companies (including those with four employees or less) under five years old; around 4,600 companies under the supervision of the Institute of Korea Entrepreneurship Development among business entities at college business incubation centers; companies in the cultural industry under five years old; and masters and master craftsmen.

Companies can easily find staff and jobseekers can get employed without difficulty, while those wishing to start a business can learn how to do so.

The government will subsidize 70 percent of an intern’s salary up to 960,000 won (822 dollars) per month for the first six months from the time he or she is employed.

“We had considered lowering the assistance amount to 800,000 won (685 dollars), or the level under the previous internship program, to relieve our financial burden,” a government source said. “But we decided to set the amount higher than that of the previous program given that businesses must help interns learn how to start a business.”

Those who start a business or create a job after finishing the program will get a government subsidy worth 70 percent of the costs incurred over the first six months up to 3.9 million won (3,340 dollars). Those employed as regular workers are not eligible for this assistance.

legman@donga.com