Lee Jae-gap "'Moseong Geubyeo' and Other Employment Insurance Funds to Be Transferred to General Accounting"

Minister of Employment: "Considering System Improvement and Spending Efficiency for Repeated Receipt Restrictions on Job-Seeking Allowance"
In Response to Audit Board President's Announcement of Employment Insurance Audit: "General Remarks on Financial Expenditure"

Minister of Employment and Labor Lee Jae-gap attending the Environment and Labor Committee plenary session held at the National Assembly on the morning of the 16th, listening to members' inquiries. (Photo by Yonhap News)

[Sejong=Asia Economy Reporter Moon Chaeseok] Lee Jae-gap, Minister of Employment and Labor, said on the 16th, "We will promote the transition of projects that should be implemented through the general account rather than the employment insurance fund, such as maternity protection benefits and Tomorrow Filling Deduction."

Minister Lee made this response during the plenary session of the National Assembly's Environment and Labor Committee, addressing concerns about the financial soundness of employment insurance.

According to Yoon Jun-byeong, a member of the Democratic Party of Korea, as of last year, the employment insurance reserve fund slightly decreased to about 6 trillion won. Including public fund management deposits (borrowings) and transfers from the general account, there is a fiscal deficit of approximately 6.5 trillion won.

In response to the question, "What contents are being reviewed regarding the financial soundness of the employment insurance fund, which was to be prepared in the first half of the year?" the minister replied, "We are primarily promoting the expansion of transfers from the general account related to maternity protection benefits and employment manpower development."

When Representative Yoon asked again, "Maternity protection benefits and Tomorrow Filling Deduction seem to be items that should be covered by the general account," Minister Lee nodded in agreement.

Maternity protection benefits refer to projects that provide money during maternity leave, parental leave, and spouse's paternity leave, while Tomorrow Filling Deduction refers to a project that supports young people employed by small and medium-sized enterprises in accumulating a lump sum.

Due to the nature of these projects, there are criticisms that they lean somewhat more toward strengthening the social safety net than the character of employment insurance.

Minister Lee explained, "I believe restructuring of similar, overlapping, and inefficient projects within employment insurance is necessary," adding, "We are also reviewing measures to restrict repeated receipt of unemployment and job-seeking benefits and to improve expenditure efficiency."

Meanwhile, regarding Auditor General Choi Jae-hyung's announcement to audit the financial soundness of the employment insurance fund, Minister Lee said, "I understand it as a general remark about the government's large fiscal expenditures that need to be reviewed, not specifically targeting employment insurance."

Earlier, on the 4th of last month, Auditor General Choi mentioned in his New Year's address, "We will strive to supplement the employment insurance fund and health insurance, which require long-term financial management, by deeply analyzing threats to soundness and appropriately forecasting and managing them."

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