Gwangju City Supports Employer Contributions for Employment Retention Subsidies

Gwangju City Hall

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Metropolitan City announced on the 13th that it will support the employer's share of expenses for small and medium-sized businesses with fewer than 300 employees for three months starting from April, linked to the Employment Retention Subsidy operated by the Ministry of Employment and Labor, marking the first such initiative nationwide.

The full support project for the Employment Retention Subsidy aims to alleviate management burdens and prevent worker unemployment by supporting part of the leave and suspension allowances when employers, inevitably forced to adjust employment due to COVID-19 damage, take employment retention measures and maintain employment.

The support targets small business owners and small and medium-sized enterprises that have maintained employment while conducting business suspension or leave due to difficulties in business operations caused by decreased sales and production from COVID-19. Applications can be made after receiving government subsidies at the Employment Welfare Plus Center.

The application and support procedure involves accessing the online application site for the employer's share supported by Gwangju City after the Employment Welfare Plus Center issues the Employment Retention Subsidy payment decision letter for April to June. Applicants submit the application form, payment decision letter, and related documents, and after verification, the subsidy is paid.

Since April 1, applications for support of the employer's share of the Employment Retention Subsidy for April have been received, with 10 businesses, including chartered bus transportation companies, applying so far.

Previously, the government temporarily increased the support rate to 90% for small and medium-sized enterprises for three months starting in April to mitigate employment shocks caused by COVID-19.

Gwangju City has secured a budget of 10 billion KRW, expecting about 17,000 people, to support 10% of the employer's share for small business owners and small and medium-sized enterprises with fewer than 300 employees to reduce the burden on companies struggling to maintain employment and to sustain workers' employment.

Gu Jong-cheon, Director of the City’s Job Policy Office, said, “Maintaining employment in the post-COVID era is most important,” and added, “We will strive to support reducing labor cost burdens for small business owners and SMEs facing difficulties and to help stabilize employment.”

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