150 Million Won to Be Given to 930,000 Special Workers and Leave Takers... Applications Open from Next Month 1st (Comprehensive)

Announcement of Plan to Promote 'Emergency Employment Stability Support Fund'
Eligibility: Below 150% Median Income, Income or Sales Decrease Required
Unpaid Leave from March to May... Focus on Companies with Fewer than 50 Employees
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 Hyunmin Kim 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 hyeong geunro josa), freelancers, self-employed individuals, and unpaid leave workers starting from the 1st of next month. However, applicants must have suffered financial damage due to 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, announcing plans to promote the COVID-19 Emergency Employment Stability Support Fund and the Korean New Deal.

Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki stated, "Employment-vulnerable groups such as special-type workers, freelancers, and small business owners are outside the protection of employment insurance, which exacerbates 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 worth 1.5 trillion KRW and have prepared detailed implementation plans today."

Divided Payment of 1 Million KRW and 500,000 KRW... Must Have Low Income and Recent Losses

The Emergency Employment Stability Support Fund will provide 500,000 KRW per month for up to three months to 930,000 people, including special-type workers, freelancers, small business owners, and unpaid leave workers who do not benefit from the employment insurance system. Of the total budget requirement of 1.5 trillion KRW, 940 billion KRW secured from contingency funds will be disbursed first, with the remaining funds to be secured through the 3rd supplementary budget bill. Using the contingency funds, 1 million KRW will be paid first, and 500,000 KRW will be paid in installments through the 3rd supplementary budget. A Ministry of Employment and Labor official said, "We plan to promptly submit the 3rd supplementary budget bill to the National Assembly," adding, "We expect the 3rd supplementary budget to pass around the end of June or July."

For special-type workers and freelancers, income generated from work will be broadly recognized. This includes private tutors, substitute drivers, insurance planners, golf caddies, door-to-door salespeople, trainers, and caregivers. Small business owners are targeted at one-person self-employed or small business operators, excluding certain industries such as entertainment, nightlife, and gambling.

Due to the impact of COVID-19, the wrinkles of small business owners and self-employed people are deepening, and on the 30th, the kitchen street in Hwanghak-dong, Seoul, is quiet. Photo by Moon Honam munonam@

To receive the support fund, applicants must have relatively low income and have experienced recent income or sales decline or unpaid leave for a certain period. First, income levels must be either ▲ household income at or below 150% of the median income (approximately 7.12 million KRW for a four-person household) or ▲ individual annual income of 70 million KRW (for self-employed, annual sales of 200 million KRW) or less. Applicants will be allowed to choose the method most favorable to them for receiving support.

The income and sales decline 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), support is available if income or sales have decreased by 25% or more. If household income falls 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. Unpaid leave workers with household income at or below 100% of the median income can receive support if they have taken unpaid leave for a total of 30 days or more over three months or at least 5 days per month. Those with household income between 100% and 150% of the median income can receive support if they have taken unpaid leave for a total of 45 days or more over three months or at least 10 days per month.

Applications Accepted Until July 20... Can Receive Simultaneously with Emergency Disaster Relief Fund

Applications for the support fund will be accepted from the 1st of next month until July 20. Considering the possibility of a surge in applicants, the government is also considering operating a two-day or five-day rotation system for a certain period. To minimize the risk of COVID-19 infection, the Ministry of Employment and Labor plans to prioritize online applications via PC or mobile but will allow some offline visits. Applicants can apply directly or have their employers apply on their behalf. The government aims to disburse the support fund within two weeks after application.

An official from the Ministry of Employment and Labor said, "We will establish a separate center responsible for handling the Emergency Employment Stability Support Fund," adding, "We also plan to conduct group training sessions to guide online applications." Those who apply for the support fund 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 support is received through the "Special Support for Regional Employment Response," 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 application on the 18th and open a website on the 25th to introduce key information and provide detailed application instructions. Deputy Minister Lim Seo-jeong said, "We will promptly complete tasks such as building an online system to ensure that the support fund can be paid without delay as soon as possible."

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