BGF Retail Co., which operates the CU convenience store chain, signed a cooperative financial agreement with the Korea Workers‘ Compensation & Welfare Service (K-COMWEL) for a franchise owner and employee fund.

The corner store operator said in an announcement on Friday that it will participate in K-COMWEL’s “Green Seed System”. This initiative allows business owners to open a retirement fund for their employees and specifically targets small businesses with 30 or fewer employees where workers earn less than 130 percent of the minimum wage, or an average of less than 2.68 million won ($2,013) per month.

Under the program, franchise owners and their employees are eligible to receive assistance equal to 10 percent of their severance pay over a three-year period. Franchise owners will also receive a waiver of pension administration fees for four years.

For example, if a franchise owner‘s monthly salary is 2 million won, they would only need to pay 180,000 won, as 10 of the monthly installments of 200,000 won for the employee’s severance benefits will be reduced. Employees then receive the accumulated monthly installments along with fund management profits, in addition to an extra 10 percent of their existing severance benefits.

BGF Retail expects that the initiative will not only alleviate the burden of employee severance benefits for franchise owners but also promote long-term employment, and thus help mitigate labor shortages.

In addition to the severance fund operation, BGF Retail highlights its industry-leading cooperative programs, which include measures to enhance franchisee profitability and provide safe work insurance alongside labor, legal, and tax consultations.

“We will be attentive to the voices of our franchise owners and strengthen our partnership with them to enhance store competitiveness,” Chief Executive Officer Min Seung-bae said.

By Pulse

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