Special Employment Support for Six Industries Including Film, Bus, and Casino... Until March 31 Next Year

Extension of Designation for 8 Industries Including Travel and Tourism Accommodation for 1 Year
All 14 Industries Designated Until March 31 Next Year
Employment Retention Support Fund Provides Up to 90% of Leave and Suspension Allowances, etc.

[Sejong=Asia Economy Reporter Moon Chaeseok] Six industries including the film industry, route buses, and foreigner-only casinos have been newly added as special employment support industries. The support period for the existing eight industries, such as travel and tourism accommodation, has been extended by one year until the end of March next year. All 14 industries will receive support from the 1st of next month until March 31 of next year. These industries will receive employment retention subsidies of up to 90% compared to leave and suspension allowances.

The Ministry of Employment and Labor announced on the 17th that it held the "2nd Employment Policy Deliberation Committee of 2021" from the 11th to the 16th and deliberated and resolved to extend the designation period of these special employment support industries. All 14 newly designated and extended industries will receive support from the 1st of next month until March 31 of next year.

Six industries including film, buses, and casinos newly added as direct hits from COVID-19

First, six industries including the film industry, route buses (excluding quasi-public service targets), aircraft parts manufacturing, training facilities, amusement facilities, and foreigner-only casinos have been designated as special employment support industries for one year. These industries were directly hit by COVID-19, resulting in a decrease in insured persons and an increase in applications for employment retention subsidies.

According to the Ministry of Employment and Labor, most of the six industries saw their sales drop by 60-70% compared to the previous year. The decrease rate of insured persons showed a declining trend across all industries, such as amusement facilities (-22.9%), film industry (-14.7%), and casinos (-9.7%). The application rate for employment retention subsidies in 2020 was 30.9% for aircraft parts manufacturing, exceeding the overall industry average of 3.0% by tenfold. Casinos (30.4%), amusement facilities (17.5%), training facilities (16.1%), and route buses (10.7%) also showed rates more than three times the overall average. The industrial production index was also lower than the service industry average (107), with amusement facilities and casinos at 47, film at 54, and route buses at 68.

Extension of designation for eight face-to-face service industries including travel and tourism accommodation until next year

On the 4th, the travel agency counters at the departure hall of Terminal 2, Incheon International Airport, appeared deserted due to the impact of COVID-19. Photo by Mun Ho-nam munonam@

The designation period for eight industries including travel, tourism accommodation, tourism transportation, performance, aircraft handling, duty-free shops, exhibition and international conference industries, and airport buses, which was scheduled to end on the 31st of this month, will be extended by one year until March 31 of next year. This decision was made considering that the prolonged COVID-19 pandemic has practically halted travel and tourism, and the business and employment conditions of these industries have not yet improved.

Among the eight industries, most saw their sales decrease by 60-80% compared to the previous year. The accommodation business sentiment index was 16, significantly below the overall industry average of 77. The industrial production indices for travel (16), aviation (19), and aviation support services (ground handling, 29) were also below the service industry average (107). The application rates for employment retention subsidies in 2020 were 90.9% for airport buses, 76% for duty-free shops, and 47.7% for travel. All designated industries significantly exceeded the overall average of 3.0%.

The Ministry of Employment and Labor stated, "The business damage and employment instability in these industries due to the prolonged COVID-19 pandemic are at a serious level. It is judged that it will take a considerable time to recover, so the decision was made to extend or designate these industries."

Up to 90% employment retention subsidy for leave and suspension allowances, etc.

A civil petitioner receiving consultation regarding the Employment Retention Support Fund at the Job Plus Center counter on the first floor of the district office. (Photo by Asia Economy DB)

Employers in the 14 industries newly designated or extended as special employment support industries until next year will receive employment retention subsidies of up to 90% of paid leave and suspension allowances. This is about 23% higher than the two-thirds support rate for non-special industries. The daily payment per worker will also increase from 66,000 KRW to 70,000 KRW.

Additionally, deadlines for payment of various employment and industrial accident insurance premiums and mandatory employment contributions for persons with disabilities will be extended. No penalties will be imposed on overdue health insurance and national pension contributions. Enforcement of collection for employment, industrial accident, and health insurance arrears will be deferred. The support limit for vocational training will increase from 240% to 300% of the paid insurance premiums, and the unit cost support for training expenses will increase from 100% to 150%.

For workers, the repayment period for livelihood stabilization funds will be extended from a maximum of 5 years to 8 years. The limit for wage arrears living expenses will increase from 10 million KRW to 20 million KRW. The loan limit for vocational training living expenses will increase from 20 million KRW to 30 million KRW per person annually. The training expense support amount for the National Tomorrow Learning Card will increase from 3 million KRW to 4 million KRW, and the worker's burden rate will be lowered from 15-55% to 0-20%.

Regarding the specific designation scope and support details, the Ministry of Employment and Labor plans to promote the establishment and revision of the special employment support industry designation notice within this month.

Minister of Employment and Labor Lee Jae-gap said, "The industries extended and newly designated this time are those that are highly likely to suffer permanent damage due to the prolonged COVID-19 pandemic and have a significant impact on the overall economy. We will do our best to ensure that this extension and designation help in business and employment recovery and make multifaceted efforts to overcome the difficulties caused by COVID-19 as soon as possible."

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