Extension of Special Industry Employment Retention Support Fund for Tourism and Travel from 180 Days to 240 Days

Minister Lee Jae-gap at TF Countermeasure Meeting: "60-Day Extension for Additional Support"
"Support Period Ends in September, Urgent Need for Further Measures"
Extension of Special Industry Designation Period Also Under Review... Deliberation Meeting on 20th

Minister Lee Jae-gap of the Ministry of Employment and Labor. / Photo by Jin-hyung Kang aymsdream@

[Asia Economy Reporter Kim Bo-kyung] The payment period for employment retention subsidies for special employment support sectors, which were hit hard by the impact of the novel coronavirus infection (COVID-19) in industries such as tourism, travel, and performance, will be extended from the existing maximum of 180 days to 240 days.

On the 10th, Lee Jae-gap, Minister of Employment and Labor, held the 'Employment and Labor Crisis Response TF Policy Meeting' and stated, "We will hold an Employment Policy Deliberation Committee on the 20th to promote a plan to extend the employment retention subsidy support period for special employment support sectors by an additional 60 days from the existing maximum of 180 days."

Regarding the background for the extension, Minister Lee explained, "Many companies in the special employment support sectors have been continuing shutdowns and leaves of absence since March, when the COVID-19 crisis began," adding, "Some companies will have their employment retention subsidy support period expire in September, making additional measures urgent."

He continued, "The labor-management-government tripartite agreement to overcome the COVID-19 crisis, signed on the 28th of last month, also included a push to extend the employment retention subsidy support period."

Earlier, in March and April, the Ministry of Employment and Labor designated eight industries with direct and potentially prolonged COVID-19 damage?travel, tourism accommodation, tourism transportation, performance, aircraft ground handling, duty-free shops, exhibition and international conference industries, and airport buses?as special employment support sectors. Approximately 6,400 companies in these sectors that applied for employment retention subsidies are receiving expanded support compared to general industries.

Additionally, the Ministry operates an employment retention subsidy system that pays up to 90% of wages to employers who implement paid leave or furloughs without reducing their workforce due to COVID-19 difficulties. However, the period during which companies can receive subsidies is limited to 180 days under the Enforcement Decree of the Employment Insurance Act. For special employment support sectors only, the subsidy payment period will be extended by 60 days, supporting up to a maximum of 240 days.

Asia Economy DB=Photo by Hyunmin Kim kimhyun81@

Minister Lee stated, "Through meetings with the industry and on-site surveys, we plan to review the extension and duration of the designation period for the eight special employment support sectors, which are scheduled to end on September 15, and submit this for deliberation at the Employment Policy Deliberation Committee." Special employment support sectors receive broader support than general industries.

He urged agency heads, "Please continuously monitor the application and payment trends of employment retention subsidies by industry on the ground and report them to headquarters," and added, "Please also carry out thorough prevention and inspection efforts to eradicate fraudulent claims."

Regarding the seven special disaster areas affected by the monsoon and heavy rains, he requested, "Please carefully inspect the areas requiring support for damage recovery and employment stabilization and report them to headquarters."

Minister Lee also ordered, "Please inspect safety management practices to prevent accidents such as collapses, flooding, and electric shocks caused by heavy rain at construction sites and other workplaces," and emphasized, "Thoroughly identify the status of workplaces vulnerable to heavy rain in your jurisdiction and ensure thorough guidance on accident cases and preventive measures."

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