Ministry of Employment's Supplementary Budget of 1.4 Trillion Won... Expansion of Employment Retention Subsidies, Special Employment Types, and Job-Seeking Allowance Support

Approval of 4th Supplementary Budget... 500,000 to 1,500,000 KRW Support for Special Employment and Freelancers
484.5 Billion KRW for Expanded Employment Retention Subsidies and New Applications
Priority Support for Unemployed Youth Participating in Job-Seeking Programs
Additional 200 Billion KRW for Unemployment Benefits to Support 30,000 Jobless Individuals

Asia Economy DB=Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kim Bo-kyung] The government will extend the payment period for employment retention subsidies for general industries from the current maximum of 180 days to 240 days. It will support 700,000 special-type workers (teukso hyeong geunro jongsaja, teukgo) and freelancers with employment stability subsidies ranging from 500,000 to 1,500,000 KRW per person.

On the 10th, the Ministry of Employment and Labor announced through the Cabinet meeting that the fourth supplementary budget bill under its jurisdiction has been set at 1.4145 trillion KRW.

First, 484.5 billion KRW has been allocated to expand employment retention subsidies. The payment period for employment retention subsidies, which partially compensate for paid leave and suspension allowances in general industries, will be extended from the current 180 days per business to 240 days. The Ministry of Employment and Labor estimates that this will provide additional support to about 80,000 workers (approximately 150 billion KRW).

Separately, in response to the recent expansion of social distancing measures, the ministry plans to support 160,000 workers (about 330 billion KRW) at businesses newly applying for employment retention subsidies.

The ministry is also considering extending the special period of 90% increased support for employment retention subsidies, which is set to end this month, depending on the spread of the novel coronavirus infection (COVID-19).

Employment stability subsidies totaling 556 billion KRW will be provided to 700,000 special-type workers and freelancers whose income has decreased. Among them, 500,000 special-type workers and freelancers who previously received emergency employment stability subsidies (1.5 million KRW) will receive an additional 500,000 KRW, and 200,000 newly applying special-type workers and freelancers with recent income decreases will receive 1.5 million KRW.

For 200,000 low-income unemployed youth, a special youth job-seeking subsidy of 500,000 KRW per person (102.5 billion KRW) will be provided. This decision reflects the difficult employment conditions faced by young people due to COVID-19-related hiring reductions, delays, and prolonged job search periods.

The special youth job-seeking subsidy targets low-income youth who are actively seeking jobs but have not been able to secure employment due to economic downturns such as COVID-19. If desired, recipients will be linked to employment support services such as job counseling and placement, as well as new technology and digital training.

The main targets are unemployed low-income youth who either received the Youth Job-Seeking Activity Support Fund (with a standard median income of 120% or less) during 2019?2020 or participated (including new participants) in the Employment Success Package (Type I, with a standard median income of 60% or less).

The support period and number of people eligible for family care leave cost support will also be expanded. With a supplementary budget of 56.3 billion KRW, support will be provided to 125,000 people. Following the recent amendment to the Act on Gender Equality in Employment, the family care leave period has been extended from the original 10 days to 20 days (25 days for single parents), and cost support will be expanded accordingly.

Workers at small and medium-sized enterprises (priority support target companies) will receive additional care cost support for up to 5 days (250,000 KRW). Single parents will be supported for up to 10 days (500,000 KRW). However, workers at large corporations and public enterprises are excluded.

For 20,000 workers utilizing flexible work systems, support of up to 5.2 million KRW per person annually will be provided. This aims to reduce the burden on businesses due to increased use of remote and telecommuting work. The supplementary budget is expected to require 15.3 billion KRW.

Finally, 200 billion KRW from the supplementary budget will be invested to provide additional job-seeking benefits to 30,000 people. A Ministry of Employment and Labor official explained, "This is to proactively respond to the increase in job-seeking benefit applications due to the resurgence of COVID-19 and the prolonged unemployment caused by the employment difficulties."

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