Special Employment Support for Tourism and Performance Industries... Government to Pay 90% of Leave Allowance (Comprehensive)

Ministry of Employment Announces 'COVID-19 Employment Response Measures'... Employment Retention Subsidy Increased to Max 2.1 Million KRW per Month for 170,000 Workers
Expansion of Worker Loans
Support for Call Center Work Environment and SME Remote Work Infrastructure Development

Lee Jae-gap, Minister of Employment and Labor / Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kim Bo-kyung] The government has decided to raise the employment retention subsidy limit for the tourism and performance industries, which employ 170,000 workers, to 90% of the suspension (leave) allowance. This employment measure was taken based on the assessment that the tourism and performance industries have suffered severe damage due to the novel coronavirus disease (COVID-19). Additionally, small and medium-sized enterprises (SMEs) and mid-sized companies building telecommuting infrastructure, such as call centers, will receive up to 20 million KRW in cost support.

Lee Jae-gap, Minister of Employment and Labor, announced this on the morning of the 16th at a briefing on 'COVID-19 Response Employment Measures and Industrial Site Quarantine Management' held at the Government Complex Sejong. The announcement included measures to prevent employment instability in four specially designated employment support industries: travel agencies, tourism accommodation, tourism transportation, and performance industries. A total of 13,845 workplaces, including hotels, airlines, charter buses, travel agencies, and performance companies, employing 171,476 workers, will be eligible for support benefits for six months.

Employment Retention Subsidy Project Expected to Reach 300 Billion KRW... Over 13,000 Workplaces Applied

First, the employment retention subsidy will increase from 75% to 90% of the suspension/leave allowance, and the daily limit will rise from 66,000 KRW to 70,000 KRW (up to 2.1 million KRW per month). For a worker earning 2 million KRW monthly who receives 1.4 million KRW in suspension allowance, this measure means the government will cover 1.26 million KRW, and the company will bear 140,000 KRW.

The employment retention subsidy can be applied for only if the employer implements suspension or leave without reducing the number of workers and pays suspension or leave allowances of at least 70% of the average wage. As of the 13th, a total of 13,250 workplaces have submitted prior plans to the Ministry of Employment and Labor to receive the subsidy. The subsidy is funded by the employment insurance fund, which is jointly borne by employers and workers. The Ministry recently expanded the subsidy project budget to 100.4 billion KRW, but with over 1,000 applications per day surging, the project budget is expected to expand to around 300 billion KRW.

An official from the Ministry of Employment and Labor explained, "Since payments are made according to mandatory expenditures through changes in fund operation plans, there will be no situation where payments cannot be made due to lack of funds," adding, "We practically estimate the budget could reach between 200 billion and 300 billion KRW."

In cases where unpaid leave is implemented with labor-management agreement, the application requirements for unpaid leave support funds will be relaxed. The required unpaid leave period will be reduced from 90 days to 30 days, and the prior paid suspension period within one year will be reduced from three months to one month.

Furthermore, the payment deadlines for employment insurance premiums, industrial accident insurance premiums, and mandatory employment charges for persons with disabilities will be extended by six months, and enforcement of delinquent payment measures will be deferred. For health insurance, no late fees will be charged during the designated period, and enforcement of delinquent payment measures will also be deferred. The support unit cost for vocational training for employers will be increased, and the support limit will be raised from 240% to 300% of the paid insurance premiums (based on priority support enterprises).

Loan Limits Expanded and Requirements Relaxed for Tourism and Performance Industry Workers

For workers and job seekers in the tourism and performance industries, the living stabilization loan limits have been expanded, and income requirements relaxed. The wage arrears living expense loan limit has been raised from 10 million KRW to 20 million KRW, the child education loan limit increased from 5 million KRW per year to 7 million KRW, and the repayment period extended from a maximum of 5 years to 8 years. The income requirement for all living stabilization loans is set at a monthly income of 3.88 million KRW.

The self-pay rate for the National Tomorrow Learning Card has been relaxed from a maximum of 55% to 20%, and the training cost limit increased from 3 million KRW to 4 million KRW over five years. Additionally, workers who have left designated industries and are unemployed are exempt from income requirements when participating in the Employment Success Package II.

Minister Lee said, "Industries that have suffered the most direct and severe damage due to COVID-19 have been designated as special employment support industries," adding, "We will actively guide and promote the system to ensure that employers and workers do not miss out on support due to lack of awareness."

Moreover, the Ministry of Employment and Labor will support local governments to implement customized regional employment stabilization measures by establishing a 'COVID-19 Regional Employment Response Special Support Project' in the supplementary budget. This aims to support living stabilization, short-term job provision, and vocational training for workers in social safety net blind spots, such as special-type workers.

Minister Lee stated, "Once the budget passes in the National Assembly, allocations will be made to metropolitan local governments based on the extent of COVID-19 damage, financial independence, and the feasibility of business plans."

In addition, the Ministry will strengthen quarantine management in call centers, which have a high risk of group infections, and provide up to 20 million KRW to SMEs and mid-sized companies building telecommuting infrastructure, covering up to 50% of employer investment costs. A project will also be conducted to support up to 20 million KRW, covering 70% of expenses required to improve working environments in small call centers, such as installing simple partitions.

Minister Lee urged, "Call center subcontractors should take responsible measures to dispel concerns about group infections and ensure the safety of counselors by improving work environments and expanding telecommuting," adding, "The government will also support necessary assistance during the improvement process in cooperation with local governments."

Meanwhile, a stabilization plan for the supply of dust masks for industrial site workers was also announced that day. This was due to the fact that although dust mask production has recently increased, corporate demand has grown even more significantly. Minister Lee said, "This demand increase is understood as a temporary phenomenon caused by companies providing dust masks to general workers and consumers purchasing them as substitutes for health masks."

Minister Lee also actively guided the proper use of industrial dust masks and requested cooperation to purchase only the necessary quantities by monitoring the supply status of dust masks at large construction companies and manufacturing workplaces, where excessive demand is expected. He added that appropriate supply measures for small and micro enterprises facing shortages are being discussed and promoted with related ministries.

Minister Lee appealed, "We ask companies and consumers purchasing dust masks to refrain from using them for health purposes so that industrial site workers can be sufficiently supplied with dust masks."

Finally, he said, "We ask employers to actively cooperate so that workers can use the family care leave system without burden," adding, "We will reduce financial burdens through family care cost support and back voluntary expansion through incentives."

This content was produced with the assistance of AI translation services.