KCCI "National Employment Insurance Roadmap Must Fully Reflect Stakeholders' Opinions"

[Asia Economy Reporter Kiho Sung] The Korea Employers Federation (KEF) commented on the government's announcement of the "National Employment Insurance Roadmap," which aims to enroll all working employees in employment insurance, stating that "to enhance the sustainability of employment insurance, it is necessary to comprehensively review the characteristics of the target enrollees, the necessity of employment insurance enrollment, the intentions of the parties involved, the conditions of employers who must share the insurance premiums, and the impact on the labor market, and to proceed in a phased and flexible manner."

In a statement on the 23rd, KEF said, "The business community agrees with the basic intent of the roadmap to strengthen the social safety net for vulnerable groups in light of the COVID-19 crisis."

KEF added, "Key issues such as selecting the types of special-type workers who should be enrolled in employment insurance, the employment insurance premium rate, and the premium sharing ratio must be decided by fully reflecting the characteristics of special-type workers and the opinions of the parties involved." It also pointed out, "Regarding employment insurance for platform workers, which has been increasing recently mainly in the delivery industry, it is necessary to consider that there are multiple employers, short-term volatility in hiring and turnover, and diverse work methods and business models."

Furthermore, KEF emphasized, "If the employment insurance system is not designed to fit the business models and work characteristics, and if the premium sharing is not appropriately calculated according to the dynamics between employers and workers, it will inevitably lead to business and employment instability."

KEF also stated, "Since the comprehensive unemployment shocks arising from changes in the industrial environment are difficult to prepare for with employment insurance alone, the government’s active support measures are needed to activate separate mutual aid systems or private insurance that vulnerable workers, including self-employed persons who find it difficult to enroll in employment insurance, can voluntarily join."

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