[Reporter’s Notebook] Special Employment Insurance, Government Rushing Only Packaging... Ultimately Draining Salaried Workers' Pockets

(Above) Korea Labor Institute's special employment insurance financial balance estimate, (Below) Ministry of Employment and Labor's own special employment insurance financial balance estimate

[Sejong=Asia Economy Reporter Son Seon-hee] On the 8th, the reporter obtained data on the financial status of employment insurance for special-type workers (STW) from the National Assembly Budget Office at the office of an opposition party lawmaker and reported that the turning point to deficit occurred two years earlier than the government's estimate. The application of employment insurance to STWs such as private tutors is a measure in line with the government's roadmap for nationwide employment insurance enrollment, reflecting concerns that the fund's financial soundness is more serious than the government anticipated.

The basis for the report that the deficit turning point came earlier was the government's roadmap announced in December last year. The Ministry of Employment and Labor, the competent authority, cited data from the Korea Labor Institute in the roadmap, claiming that "income of 449.9 billion KRW is expected over the next five years" with the application of employment insurance to STWs, and asserted that "stable financial management is possible." They estimated that the fund would turn to deficit starting in 2025.

However, during subsequent additional investigations, it was confirmed that the Ministry of Employment and Labor already knew, like the Budget Office, that a deficit would occur starting in 2023. Based on the currently operated employment insurance, a deficit of 66.4 billion KRW was expected in 2023.

Nevertheless, the government misled the public by including only the Korea Labor Institute's estimates in the roadmap instead of its own projections, making it seem as if there was no immediate problem. The Ministry of Employment and Labor stated, "We thought the Korea Labor Institute's data based on industrial accident insurance was more credible," but did not provide a clear answer when asked why it was considered more credible.

When the government submitted the amendment to the Employment Insurance Act to the National Assembly in September last year, it attached both the Korea Labor Institute's estimates and its own cost projections. However, in the press release informing the public, only the favorable estimates supporting 'stable financial management' were selectively included. It is hard to dismiss suspicions that the government tried to downplay the already serious financial difficulties of the employment insurance fund. The Ministry of Employment and Labor officially announced an increase in the employment insurance premium rate in this year's work report. Since account separation is impossible, this ultimately means taking money from workers' pockets to cover the deficit. Although favorable estimates were presented, it is impossible to hide the 'hole' in the fund.

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