93 Million Special Employment and Leave Workers to Receive 1.5 Million Won... Applications Open from the 1st of Next Month

Government Announces Plan to Implement 'Emergency Employment Stability Support Fund'
Eligibility: Income Below 150% of Median, Income or Sales Decline Required
Applications Open June 1 to July 20, Available Online and Offline

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki is delivering a speech at the 2nd Emergency Economic Central Disaster and Safety Countermeasure Headquarters meeting held at the Government Seoul Office in Jongno-gu, Seoul on the 7th. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Kim Bo-kyung] The government will begin accepting applications for the "Emergency Employment Stability Support Fund," which provides up to 1.5 million KRW to special-type workers (teukso hyeongtae geunrosangsa, teukgo), freelancers, self-employed individuals, and unpaid leave workers starting from the 1st of next month. However, applicants must have suffered financial damage due to the novel coronavirus infection (COVID-19), and those whose income exceeds 150% of the median income will be excluded.

On the morning of the 7th, the government held the "2nd Emergency Economic Central Countermeasures Headquarters Meeting" at the Government Seoul Office and announced the plan to promote the COVID-19 Emergency Employment Stability Support Fund and the direction for implementing the Korean New Deal.

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki stated, "Vulnerable employment groups such as teukgo, freelancers, and small self-employed individuals are outside the protection of employment insurance, which has intensified their damage and suffering," adding, "A significant number of unpaid leave workers were excluded from support because they did not meet the requirements for employment retention subsidies." He continued, "To establish a comprehensive employment safety net, we have decided to create an emergency employment stability support system with a budget of 1.5 trillion KRW and have prepared detailed implementation plans today."

The Emergency Employment Stability Support Fund will provide 500,000 KRW per month for up to three months to 930,000 people, including teukgo, freelancers, small self-employed individuals, and unpaid leave workers who do not benefit from the employment insurance system. Of the total required budget of 1.5 trillion KRW, 940 billion KRW secured from contingency funds will be disbursed first, and the remaining funds will be arranged through the third supplementary budget.

Asia Economy DB=Photo by Hyunmin Kim kimhyun81@

For teukgo and freelancers, income generated from providing labor will be broadly recognized. This includes private tutors, substitute drivers, insurance planners, golf caddies, door-to-door salespeople, trainers, and caregivers. Small self-employed individuals will target one-person businesses or small merchants, excluding certain industries such as entertainment, leisure, and gambling.

To receive the support fund, applicants must have relatively low income and have experienced a recent decrease in income or sales or have taken unpaid leave for a certain period. First, income levels must meet one of the following: household income at or below 150% of the median income (approximately 7.12 million KRW for a four-person household) or an individual annual income of 70 million KRW or less (for self-employed, annual sales of 200 million KRW or less).

The income and sales reduction criteria are divided into two main categories. If household income is at or below 100% of the median income (individual annual income of 50 million KRW or annual sales of 150 million KRW or less), support is available if income or sales have decreased by 25% or more. If household income is between 100% and 150% of the median income (individual annual income between 50 million and 70 million KRW or annual sales between 150 million and 200 million KRW), support is available if income or sales have decreased by 50% or more. The decrease in income or sales is assessed by comparing December of last year to January of this year with March to April of this year.

Unpaid leave workers are those who took unpaid leave between March and May, primarily targeting employees of companies with fewer than 50 employees who are enrolled in employment insurance. However, some industries facing significant difficulties, such as airport ground handling and manpower supply, will be supported regardless of company size. For unpaid leave workers, regardless of income reduction, those with household income at or below 100% of the median income who have taken a total of 30 or more unpaid leave days over three months or at least 5 days per month are eligible. For those with household income between 100% and 150% of the median income, eligibility requires a total of 45 or more unpaid leave days over three months or at least 10 days per month.

Applications for the support fund will be accepted from the 1st of next month until July 20th. Considering the possibility of a surge in applicants, the government is also reviewing the operation of a two-day or five-day rotation system for a certain period. The Ministry of Employment and Labor plans to prioritize online applications via PC or mobile to minimize the risk of COVID-19 infection, but some offline in-person applications will also be allowed. Applicants can apply directly or have their employers apply on their behalf. The government aims to disburse the support funds within two weeks of application. Upon applying, applicants can also receive desired employment services such as vocational training and job placement through employment centers.

The Emergency Employment Stability Support Fund can be received simultaneously with the government's "Emergency Disaster Relief Fund," which supports livelihood difficulties caused by COVID-19. However, if applicants receive support through the "Special Regional Employment Response Support" currently implemented by local governments, the remaining amount will be paid within the 1.5 million KRW limit.

The Ministry of Employment and Labor plans to announce the required documents for the application on the 18th and will open a website on the 25th to introduce the main details and provide specific application instructions. Deputy Minister Lim Seo-jung stated, "We will promptly complete the work for establishing the online system and other preparations to ensure that the support funds can be disbursed smoothly as soon as possible."

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