Proposal of Special Act on Emergency Disaster Relief Fund Donations by the Ministry of Strategy and Finance: "Use of Employment Insurance Fund" (Update)

Jeon Hye-sook, Chair of the Public Administration Committee, Leads Bill for Overcoming Employment Crisis Due to COVID-19 Impact
If Support Funds Not Received Within 3 Months, Considered 'Voluntary Donation' and Incorporated into Fund
Plan to Process Special Act 2nd Supplementary Budget at Plenary Session on 29th

Chairperson Jeon Hye-sook of the Administrative Safety Committee is striking the gavel at the plenary meeting of the committee held on the afternoon of the 27th at the National Assembly in Yeouido, Seoul.
[Image source=Yonhap News]

[Asia Economy Reporter Han Seung-gon] A special bill has been proposed that includes a provision stating that if the emergency disaster relief fund, which was expanded to cover the entire population in response to the novel coronavirus infection (COVID-19) crisis, is not received within three months, it will be converted into a donation. The bill also establishes a basis for using the donated funds as revenue for the Employment Insurance Fund.

Jeon Hye-sook, chairperson of the National Assembly's Public Administration and Security Committee and a member of the Democratic Party of Korea, has introduced the "Special Act on the Recruitment and Use of Emergency Disaster Relief Fund Donations" as the main sponsor.

According to the special bill, the Minister of Employment and Labor can recruit voluntary donations for the emergency disaster relief fund, and the institutions responsible for collecting donations can be designated as three entities: △ emergency disaster relief fund application reception agencies, △ local governments, and △ the Korea Workers' Compensation and Welfare Service.

The types of emergency disaster donations are classified into △ recruited donations and △ deemed donations. Donations made with the voluntary consent of the applicant at the time of applying for the emergency disaster relief fund or donations given voluntarily by the recipient after receiving the support are classified as "recruited donations."

[Image source=Yonhap News]

If an application is not submitted within three months from the start date of the emergency disaster relief fund application, it is considered that there was a voluntary intention to donate, and the amount is recorded as a "deemed donation."

The methods for recruiting emergency disaster donations and the application procedures will be determined through consultation between the Minister of Employment and Labor and the Minister of the Interior and Safety. Additionally, the donations can be used as revenue for the Employment Insurance Fund.

Donations classified as revenue for the Employment Insurance Fund are to be used for projects such as employment stabilization, vocational skill development, and unemployment benefit payments to overcome the employment crisis caused by COVID-19.

The special bill aims to be processed at the plenary session on the 29th, along with the second supplementary budget bill, after review by the National Assembly's Public Administration and Security Committee.

The government plans to provide a 15% tax credit on year-end tax settlements or comprehensive income tax filings for those who donate the emergency disaster relief fund.

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