Incheon Metropolitan City has completely redesigned its support policy for the auto parts industry. The city is shifting from employment subsidy-centered programs to a package-style initiative that simultaneously supports worker asset-building and corporate restructuring.
The Incheon Chamber of Commerce and Industry announced on the 26th that it is launching the "2026 Automobile Industry Mutual Growth Agreement Expansion Support Project." The total project budget is 940 million won, led by Incheon City with funding secured through a Ministry of Employment and Labor grant program.
The project consists of three pillars: the Automobile Industry Corporate Leap Package (corporate support), Mutual Growth Worker Happiness Connection (worker support), and Mutual Growth Plus Governance (policy development). Eligible recipients are auto parts manufacturers (C30) or finished vehicle supplier companies based in Incheon.
Worker support is the core component. The newly introduced "Future Connection Savings" program provides matching funds from Incheon City when workers with three or more years of continuous employment contribute 150,000 won monthly. At the 10-month maturity, workers can accumulate up to 3 million won—combining their 1.5 million won in contributions with 1.5 million won in matching funds. The program targets 200 workers.
New hires receive the "Mutual Growth Connection Incentive," a one-time payment of up to 500,000 won after maintaining employment for three months to encourage early retention. Additionally, the "Mutual Growth Cultural Life Support" program offers cultural activities and healing packages to 400 incumbent workers.
In corporate support, 15 companies preparing for ESG and KRAS certifications will receive capacity-building consulting. Up to 3.3 million won in internalization subsidies will be provided to 40 consulting managers. Companies hiring new workers will also receive up to 15 million won in workplace environment improvement subsidies.
For governance, an advisory committee on future vehicle transition will be established with participation from industry, academia, and research institutions. A communication reporter system will also be created, involving workers from tier-2 and tier-3 suppliers, to conduct field satisfaction surveys and identify best practices.
"While previous programs focused on subsidizing corporate labor costs through hiring incentives and employment subsidies, this year's emphasis is on improving worker welfare and asset-building," said Ham Ji-hyun, Director of Public Affairs and Communication Reinforcement at Incheon Chamber of Commerce and Industry. "We have redesigned the support system to help internal combustion engine-focused parts makers retain skilled workers during the transition to future vehicles."
Applications for program participation can be submitted through BizOK and the Incheon Chamber of Commerce and Industry website.