Ministry of Employment to Provide Up to 6 Million KRW per Person to SMEs Hiring Unemployed Workers

The "Special Employment Promotion Incentive" Program to be Implemented Until the End of This Year... 247.3 Billion Won Additional Budget Allocated

On the 26th, job seekers are filling out job application forms at the 2019 Seoul-type New Deal Job Fair held at SETEC in Gangnam-gu, Seoul. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kim Bo-kyung] The Ministry of Employment and Labor will implement the 'Special Employment Promotion Subsidy' system, which provides up to 6 million KRW per worker to companies that hire unemployed individuals.

On the 27th, the Ministry of Employment and Labor announced through a press release that the special employment promotion subsidy program will be carried out until the end of December. Previously, the ministry amended the Enforcement Decree of the Employment Insurance Act and reflected 247.3 billion KRW in the third supplementary budget to promote this project.

The support targets of this project are small and medium-sized enterprises (SMEs) and medium-sized enterprises that hire unemployed workers who need employment promotion, such as those who lost their jobs during the spread of the novel coronavirus infection (COVID-19) crisis.

Specifically, support is provided to those who ▲ left their jobs after February 1 of this year and have been unemployed for more than one month ▲ long-term unemployed for more than six months before the hiring date ▲ and those who hire current employment promotion subsidy recipients after signing a labor contract for more than six months.

For each newly employed worker, SMEs will receive up to 1 million KRW per month, and medium-sized enterprises will receive 800,000 KRW per month for up to six months. Support is provided up to 80% of the amount paid by the employer and is paid monthly after one month of employment.

Additional support is also possible if a labor contract without a fixed term, such as regular or indefinite contracts, is signed and employment continues for more than six months after the six-month support period expires. The support limit per business is 100% of the number of insured employees under employment insurance last year, and for newly established businesses this year, it is set at 30 people.

Employers can apply by visiting the corporate support department of the employment center with jurisdiction over the business location or online through the employment insurance website.

Kim Young-jung, Director of Labor Market Policy at the Ministry of Employment and Labor, said, "The hiring subsidy for SMEs and medium-sized enterprises will serve as a catalyst to promote employment for workers who lost their jobs due to COVID-19 and improve the difficult business conditions. We will also make every effort to promote and manage the execution of this project so that it can be well utilized in the field."

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