Hong Nam-ki, Deputy Prime Minister: "We Have Taken the First Step Toward Universal Employment Insurance... Need to Consider Design and Standards"

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is speaking at the tripartite social dialogue to overcome the COVID-19 crisis held at the Prime Minister's official residence in Jongno-gu, Seoul, on the 20th. Photo by Kang Jin-hyeong aymsdream@

[Sejong=Asia Economy Reporter Kim Hyun-jung] As the amendment to the Employment Insurance Act, which includes artists as mandatory subscribers to employment insurance, passed the plenary session of the National Assembly, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, emphasized the need to promptly review the rational design and contribution standards of employment insurance going forward.

On the 20th, Deputy Prime Minister Hong posted on his SNS, "With the amendment to the Employment Insurance Act, the first button for nationwide employment insurance has been properly fastened, but to expand it to the entire population, the foundation stones must be better laid in the future." Earlier, the National Assembly approved the amendment to the Employment Insurance Act that expanded the scope of employment insurance to include artists. The amendment provides the basis for workers in the arts sector to enroll in employment insurance if they wish, enabling them to receive unemployment benefits necessary for livelihood stabilization and early reemployment. Accordingly, employers who enter into service contracts with artists will be required to report employment insurance enrollment.

Regarding this, Deputy Prime Minister Hong directly mentioned various controversial issues such as premium and benefit design, employer classification, and contribution standards, stressing the need for thorough preparation in advance. He wrote, "The first thing to consider is how to ensure fairness between various types of workers such as special types of workers and freelancers, compared to the current employment insurance system centered on regular workers," adding, "Premiums and benefits between existing general workers and new subscribers must be rationally designed."

He also pointed out, "Secondly, in the case of special types of workers and freelancers, unlike general workers, it must be examined whether there is an employer, who the employer is if there is one, and how the employer's contribution should be handled," and "It is also necessary to review in advance whether the contribution standard should be based on wages or income." Regarding collection and management, he emphasized, "Whether to utilize the existing system or select a new collection agency is one of the preliminary tasks that must be meticulously established as a rational collection system."

Earlier, he referred to 'Hakin-dang,' a 100-year-old traditional house located in Jeonju Hanok Village, saying, "Just as Hakin-dang stands as an excellent house built on a sturdy foundation stone with a well-constructed pillar framework and a fitting roof, the new concept and system of nationwide employment insurance must also carefully lay the foundation stones before weaving the pillars and roof of the employment insurance framework and content well, so that the system will function robustly even after 100 years." He emphasized, "The government will do its best to build a 'dense employment safety net' that will remain unshaken for hundreds of years by gradually and meticulously preparing the foundation stones, pillars, and roofs based on social consensus."

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