Employment Insurance Benefits for 21 Million Employed... Introduction of 3 Million Won Job-Seeking Allowance Next Year

Minister Lee Jae-gap Announces 'Safety Net Enhancement' Measures in Korean New Deal Plan
Gradual Expansion of Employment and Industrial Accident Insurance for Artists and Special Types of Workers
National Employment Support System from January Next Year... 7.2 Trillion Won Required by 2025

Minister Lee Jae-gap of the Ministry of Employment and Labor. / Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Kim Bo-kyung] The government is pushing for employment insurance coverage for 21 million employed individuals by 2025, aiming to establish a 'nationwide employment safety net.' Starting January next year, the Korean-style unemployment assistance program, the 'National Employment Support System,' will be implemented to provide job-seeking promotion allowances of up to 3 million KRW.

On the morning of the 20th, Minister of Employment and Labor Lee Jae-gap held a briefing at the Government Sejong Complex and announced the 'Safety Net Enhancement' plan, one of the specific implementation strategies of the Korean New Deal plan.

At the briefing, Minister Lee stated, "By 2025, we will ensure that all 21 million working citizens are protected by employment insurance," adding, "We will prepare a roadmap to eliminate blind spots in employment insurance by the end of the year."

The Ministry of Employment and Labor plans to gradually expand employment insurance coverage to all working citizens as part of the nationwide employment safety net. This applies to employed persons except those excluded from employment insurance coverage, such as soldiers, public officials, and private school teachers.

The number of employment insurance subscribers will increase from 13.67 million last year to 17 million in 2022 and 21 million in 2025. Employment insurance will be gradually applied starting with artists and special-type workers (Special Employment Types, SETs), whose employment vulnerabilities were exposed during the COVID-19 pandemic. The employment insurance law for artists is scheduled to be implemented in December, and the amendment to the Employment Insurance Act for SETs is targeted for approval by the end of this year.

Considering the characteristics of artists and SETs, unemployment benefits equivalent to about 60% of the average monthly wage will be provided for up to nine months not only for involuntary job loss but also for job loss due to income reduction. Starting next year, maternity and parental benefits will be paid to artists and SETs, and low-income artists and SETs will be newly included in the Duru Nuri Project support targets, with employment insurance premiums subsidized up to 80%.

The number of SET occupations eligible for industrial accident insurance benefits will also increase. The number of SET subscribers to industrial accident insurance is targeted to grow from 78,000 last year to more than 166,000 by 2025. The number of SET occupations covered by industrial accident insurance has expanded from nine to a total of 14 this month, including door-to-door salespersons and freight truck owners. Based on future research results, IT industry freelancers and care workers will be added. The government will invest 3.2 trillion KRW in national funds by 2025 to build the nationwide employment safety net.

[Image source=Yonhap News]

Starting January 1 next year, the National Employment Support System will be implemented. This system is a measure to cover blind spots for groups not benefiting from employment insurance, such as job seekers, women with career interruptions, self-employed individuals, and long-term unemployed persons. Customized employment support programs will be provided to vulnerable employment groups, and job-seeking promotion allowances of 500,000 KRW per month will be provided for up to six months to support low-income households. The program aims to boost job-seeking motivation through work experience programs and support start-ups and business recovery for self-employed and small business owners. A budget of 7.2 trillion KRW will be required for protecting these vulnerable groups by 2025.

To prepare for crisis situations like COVID-19, social safety nets such as basic livelihood security, emergency welfare, and sickness benefits will also be strengthened. The support obligation criteria for basic livelihood security's livelihood benefits will be abolished by 2022, and a pilot project for 'sickness benefits' to compensate income for workers who lose their ability to work due to health issues will be implemented. A total of 11.8 trillion KRW, including 10.4 trillion KRW in national funds, will be spent by 2025.

Meanwhile, the Ministry of Employment and Labor will foster talent for the digital and green New Deal in line with changes in the new industrial economic structure. By 2025, the plan is to nurture 100,000 core AI software talents and 20,000 green convergence technology talents. The vocational training system will be restructured to strengthen training in new technology fields, and internet accessibility for rural and vulnerable groups will be enhanced.

Minister Lee said, "The Korean New Deal is a national development strategy to overcome the COVID-19 crisis and leap forward as a leading country," adding, "We will build employment and social safety nets to alleviate employment anxiety that may arise during economic and industrial restructuring and foster future-oriented talents to support workforce reallocation to digital and green jobs."

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