The Korean Tourism Organization's Employee Vacation Support Program has become an integral part of corporate welfare for participating companies. Some companies have begun covering the employee contribution of 200,000 won, easing the burden on staff when taking vacation days. A survey conducted last year revealed that 89.4% of participating employees used their accumulated funds for domestic travel.
The program operates on a structure where employees contribute 200,000 won, companies contribute 100,000 won, and the government adds another 100,000 won, creating a total of 400,000 won in accumulated funds. Employees can use this money to purchase domestic travel products through a dedicated online platform called Vacation Shop. The program transitioned to its current form in 2018, and this year, the recruitment scale has increased to 145,000 participants, expanding eligibility to employees of mid-sized companies.
To share the program's achievements and examples from participating companies, the Korean Tourism Organization held a performance sharing event on September 10 at Signiel Seoul. Over 200 representatives from participating companies, relevant organizations, and collaborators attended. The event featured a CEO roundtable in the morning, followed by awards, insight lectures, and discussions throughout the day.
Companies View Participation as an InvestmentAccording to an analysis of last year's results shared at the event, 86% of company representatives expressed their willingness to rejoin the program and recommend it to other companies, despite the financial burden of increasing welfare budgets.
Executives from participating companies explained their reasoning similarly. Yoon Hyung-jin, a director at Easy Care Tech, stated, "There may be a temporary financial burden, but we view it as an investment rather than a cost. Rest is a form of competitiveness. We firmly believe that well-rested employees are more productive and drive innovation within the company." Easy Care Tech has participated for eight consecutive years, with 346 employees participating last year and 345 this year, maintaining over 300 participants for four years in a row. Yoon added, "Since joining the vacation support program, we have expanded our internal welfare system, and I believe the program has acted as a catalyst for diversifying our welfare offerings."
A&D Credit Information has participated every year since the program's inception in 2018, with a cumulative total of over 3,400 participating employees. CEO Lee Joo-kyung emphasized, "Emotional stability is crucial for our employees, who interact with clients. The primary goal of corporate management is employee happiness. While there is a small burden, the company must work together to ensure employee well-being."
The primary reason employees participate in the program is financial relief. A survey last year indicated that 90.1% of employees cited reduced cost burdens as their reason for joining.
Big Tech Plus has been covering the employee contribution of 200,000 won since 2021. As a result, all 20 employees participated last year, with only 8,245 won remaining from the allocated 8 million won, achieving a 99.9% utilization rate. CEO Ham Bae-il noted, "Since there is no personal financial burden, no one refrains from using it. To attract top talent, welfare is essential. Nowadays, job applicants consider not only salary but also welfare systems. While financial constraints are a reality, the tourism organization’s support for vacation expenses allows startups to implement such welfare systems, which is significant."
Kyeryong Construction Industry, based in Daejeon, first joined the program in 2020. Initially limited to employees with over one year of service, over 500 applied. After removing the service requirement two years later, applications surged to nearly 1,000, with a cumulative total of 5,067 participating employees. Park Jeong-kyu, an executive at Kyeryong Construction, stated, "We removed all restrictions on benefits. Even employees who joined yesterday can use it if needed. The lack of restrictions has led to active participation, and satisfaction surveys show almost no complaints. When employees take time to rest, it energizes the company, which is positive for us."
Employees Report Cultural ShiftDuring the afternoon performance sharing event, a discussion titled 'The Changes We Created in Our Company' allowed employees from participating companies to share their experiences.
At Good Runner Company, many employees enjoy running. They often use the vacation support program to cover expenses for KTX tickets and domestic flights to marathon and trail running events. CEO Lee Yun-joo remarked, "Employees utilize this program extensively, leading to high satisfaction. After attending events, they come to work wearing their medals, creating a natural atmosphere of encouraging each other to take vacations."
Vacations do not necessarily require long-distance travel. The Vacation Shop allows for payments for accommodations, transportation, as well as exhibition and experiential products. Jeon Sol-yeon, a research associate at Human Metrics, where all 19 employees participated last year, stated, "A culture of taking vacations without hesitation has taken root. The costs are covered by the vacation support program, while the time off is supported by the company's welfare system, creating a synergistic effect. The Vacation Shop also offers many options for enjoying leisure in daily life, which has greatly contributed to establishing a culture of taking breaks."
Lee Seung-tae, a team leader at Poonglim Pharmaceutical, which fully supports the 200,000 won employee contribution, noted, "It has become very natural for employees to take vacations, and the usage rate of annual leave has significantly increased. When I see employees sharing their experiences of where they went and how they used their points, it often involves those known for their strong performance at work. This suggests that corporate competitiveness and individual welfare are closely linked."
IBK Industrial Bank supports small and medium-sized enterprises by covering employee contributions. Baek Seong-hyun, a representative at IBK, revealed, "We receive direct inquiries from corporate welfare managers, indicating a positive response to the program."
CEOs Sign Joint DeclarationDuring the CEO roundtable, representatives from the tourism organization and participating companies signed the 'K-Vacation Culture Cooperative Declaration.' Seventeen companies and organizations participated, committing to four initiatives: fostering a vacation-friendly corporate culture, spreading excellent vacation welfare models, contributing to local economies through domestic travel consumption, and enhancing welfare competitiveness to secure local talent.
Park Seong-hyeok, president of the Korean Tourism Organization, stated, "Vacation culture is improving significantly, thanks to the contributions of the representatives gathered here. Strengthening the vacation and welfare competitiveness of local companies can lead to securing top talent and settling in the region, while also contributing to the revitalization of domestic travel. We will continue to develop the employee vacation support program more effectively."
Next year marks the 10th anniversary of the program, prompting the tourism organization to revise the system. The paperwork for corporate representatives will be significantly simplified, and the Vacation Shop platform will undergo a complete overhaul. Kwak Jae-yeon, head of the National Tourism Support Team at the tourism organization, stated, "We will work hard to improve the system so that administrative processes do not deter participation. We are also discussing the introduction of an offline payment system that can be used directly at travel destinations, rather than just online point payments. The platform overhaul is planned for release in 2027."
The program will also be renamed to 'Employee Vacation Support Program' starting next year. Park emphasized, "With 408 companies participating for nine consecutive years, the program's sustainability and achievements are evident. Along with the name change, we aim to expand the program's focus from just vacation expense support to promoting vacation culture, including outreach to workers in vulnerable employment sectors, such as platform workers and those in non-standard employment."
He added, "The joint declaration represents a commitment from the tourism organization and various industries to respect workers' vacation rights and promote a harmonious work-vacation culture across the industry. We anticipate a virtuous cycle where well-rested companies gain competitiveness, and this culture spreads throughout industries and regions."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.