KCCI, Korea Federation of SMEs, and Korea Employers Federation: "Legislation on Employment Insurance for Special-Type Workers Requires Separate Insurance System"

[Asia Economy Reporter Kiho Sung] Major domestic economic organizations such as the Korea Employers Federation, the Korea Federation of Small and Medium Business, and the Korea Association of Mid-sized Enterprises delivered the "Economic Sector's Position on the Legislative Promotion of Employment Insurance for Special Type Workers" to the Ministry of Employment and Labor on the 1st. Through this statement, they reiterated their economic sector's position to the Ministry of Employment and Labor ahead of the government's final decision and urged its reflection.

The economic organizations pointed out in this statement that "Although the government has socially agreed to promote employment insurance for special type workers according to the characteristics of special type workers, the government’s proposal is simply fitting special type workers into the framework of employment insurance for general workers."

In the previously concluded "Labor-Management-Government Agreement to Overcome the COVID-19 Crisis," the government pledged to promote legislation considering the characteristics of special type workers, which are completely different from general workers, but it is criticized for disregarding this in key issues.

They also stated, "We agree on the necessity of introducing employment insurance for special type workers to strengthen the social safety net, but we request the design of a separate insurance system that reflects the characteristics of special type workers, different from that of workers."

Specifically, they argued that ▲the characteristics of special type workers are completely different from general workers and resemble more closely the self-employed model, and ▲the employment insurance premium sharing ratio between special type workers and employers must be differentiated from that of general workers.

They further emphasized that ▲exceptions to mandatory enrollment should be more broadly recognized, and ▲the employment insurance finances for special type workers and workers should be managed and operated through separate accounting.

The economic organizations said, "Especially amid the COVID-19 economic and employment crisis, the necessity of an employment insurance system for special type workers is high," but also noted, "the worsening business conditions faced by the employers concerned must also be considered, and the system should be promoted as an acceptable measure."

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