Annual 1 Trillion Won Budget 'National Employment Support System' to Be Implemented from January Next Year

Bill Shelved for Over 2 Years Suddenly Passed by Environment and Labor Committee Before 20th National Assembly Ends
300,000 Won Job-Seeking Allowance for Low-Income and Youth... 400,000 People Targeted Next Year
Artists Paying Employment Insurance to Receive Unemployment and Maternity Benefits... Implementation in Second Half of Next Year

Archive photo / Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Kim Bo-kyung] Starting next year, the 'National Employment Support System,' which will receive an annual budget of about 1 trillion won, will be implemented. In the second half of next year, approximately 70,000 artists will pay employment insurance premiums and receive unemployment benefits and maternity benefits.

On the 11th, the National Assembly's Environment and Labor Committee consecutively held the bill review subcommittee and the plenary session, processing the 'Act on Promotion of Employment for Job Seekers and Support for Living Stability' and the 'Amendment to the Employment Insurance Act' containing these provisions. These bills, proposed in September last year and November 2018 respectively, had not been deeply discussed until they were suddenly passed just before the end of the 20th National Assembly. Even officials from the Ministry of Employment and Labor said, "We never imagined the bills would pass." It was only after the COVID-19 pandemic hit vulnerable groups outside the employment safety net that lawmakers from both parties began to act. Once the bills pass the National Assembly's Legislation and Judiciary Committee and the plenary session, the two systems will be implemented starting next year.

The National Employment Support System, scheduled to be implemented in January next year, provides employment support services and job-seeking promotion allowances to vulnerable employment groups such as low-income individuals, youth, and women with career interruptions. The job-seeking promotion allowance, up to 3 million won (500,000 won per month for six months), is paid to ▲ job seekers aged 18-64 with prior employment experience and ▲ those with a median income of 60% or less (assets of 600 million won or less), or ▲ youth aged 18-34 with a median income of 120% or less. With payments planned for 400,000 people next year and 500,000 in 2022, the budget is expected to be around 1 trillion won annually. Although the National Employment Support System has emerged as a solution to unemployment for groups not covered by employment insurance benefits such as unemployment benefits, issues such as financial burden and concerns about fraudulent claims remain.

Im I-ja, Chairperson of the Employment and Labor Subcommittee of the National Assembly Environment and Labor Committee, attended the Employment and Labor Subcommittee meeting held at the National Assembly on the 11th and struck the gavel to signal the start of the meeting. Photo by Yoon Dong-ju doso7@

The amendment to the Employment Insurance Act, which grants unemployment benefits to artists who pay employment insurance premiums, is set to be implemented one year after its promulgation. If passed by the 20th National Assembly, it is expected to take effect around June next year. The employment insurance premium rate is 1.6%, the same as for general workers. Contracted employers and artists each bear 0.8%. Unemployment benefits are paid only to involuntary job leavers, but exceptions are made for those who leave due to income reduction. Benefits can be received for 120 to 270 days at about 60% of the average wage, the same as general workers. However, insurance premiums must have been paid for at least nine months within the 24 months prior to job separation. Artists unable to provide labor due to childbirth or stillbirth can also receive maternity benefits, but they are not eligible for parental leave benefits or reduced working hours benefits during childcare. A limitation remains in that 'pure artists' and 'freelance artists' who do not have service contracts do not receive benefits, leaving a blind spot.

Recently, President Moon Jae-in expressed his determination to "quickly eliminate blind spots in employment insurance for artists and others" in his special speech marking his third anniversary in office. Earlier, on January 29, 2017, when he was the leader of the Democratic Party, President Moon posted on Facebook recalling the late film director Ko Choi-eun, who died six years ago due to hardship, emphasizing the need for welfare systems for artists by stating, "When artists are freer from poverty, our society will mature more spiritually and culturally." The Ministry of Employment and Labor held an employment insurance committee in July the following year to deliberate and decide on the application of employment insurance to special-type workers (STWs) and artists, preparing the bill.

Meanwhile, the ruling and opposition parties have agreed to discuss including STWs such as insurance planners and delivery workers in employment insurance coverage in the 21st National Assembly. This is because the estimated 2.21 million STWs cover a much broader range than the approximately 70,000 artists and involve more controversy. A research institute's survey also found that about 30% of STWs do not wish to enroll in employment insurance.

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