Expansion of 110,000 'Youth Digital Jobs'... Up to 1 Million KRW for Special Types of Workers and Freelancers

Resolution of 2 Trillion KRW Supplementary Budget under Ministry of Employment at National Assembly Plenary Session
Additional Support for 60,000 Digital Jobs from 50,000
Existing Applicants for Special Employment Receive 500,000 KRW, New Applicants 1,000,000 KRW

On the 25th, the supplementary budget bill worth 15 trillion won for the 4th disaster relief fund payment is being passed in the National Assembly plenary session. Photo by Yoon Dong-joo doso7@

[Sejong=Asia Economy Reporter Moon Chaeseok] The Ministry of Employment and Labor announced on the 25th that the supplementary budget bill necessary for this year's 'Youth Digital Job' project, initially announced, has been approved by the National Assembly. This policy increases the number of supported individuals from 50,000 last year to 110,000, an increase of 60,000. The supplementary budget will also be used to provide additional support payments of up to 1 million KRW to 800,000 special-type workers (special employment types) and freelancers whose income has decreased, such as substitute drivers.

The Ministry of Employment and Labor stated on the 25th that the supplementary budget bill with these contents was approved at the plenary session of the National Assembly. Of the total supplementary budget of 15 trillion KRW, the portion under the Ministry of Employment and Labor is 2.0697 trillion KRW, which is a reduction of 137.9 billion KRW from the government's original proposal of 2.2076 trillion KRW.

Details of the 2021 supplementary budget increase and decrease under the jurisdiction of the Ministry of Employment and Labor. (Source: Ministry of Employment and Labor)

The core point is to increase the support scale of the Youth Digital Job project from 50,000 to 110,000. This aligns with what Minister Lee Jae-gap of the Ministry of Employment and Labor announced on the 3rd. He also declared during his visit to IT company iToMax the day before to encourage them, saying, "The support scale for the Youth Digital Job project will be further expanded." The Youth Digital Job project is a policy that supports monthly wages of up to 1.8 million KRW for six months for small and medium-sized enterprises with five or more employees that hire youth aged 15 to 34 in IT-related jobs. Initially, 467.6 billion KRW was allocated in the main budget to support 50,000 people this year, but an additional 561.1 billion KRW will be invested to support a total of 110,000 people. The budget passed as proposed by the government.

The scale of support for the 'Special Employment Promotion Incentive' to induce new youth hiring in small and medium enterprises was reduced from 50,000 to 40,000. The related budget also decreased by 60 billion KRW from 300.1 billion KRW to 240.1 billion KRW. The Special Employment Promotion Incentive is a system that supports small and medium enterprise employers with up to 1 million KRW per month for six months when they hire youth under a labor contract of six months or more. Unlike the Youth Digital Job project, it expands support to non-IT jobs.

The 'National Employment Support System,' implemented since January, will expand youth support from the current 100,000 to 150,000, an increase of 50,000. The related budget is 108.5 billion KRW. Known as the Korean-style unemployment assistance, this system provides employment support services to vulnerable employment groups such as low-income job seekers aged 15 to 69 and youth who are outside the employment safety net, and pays a job-seeking promotion allowance of 500,000 KRW per month for up to six months if job-seeking obligations are fulfilled. There are considerable concerns that some applicants may receive up to 3 million KRW in job-seeking allowances without intending to find employment. A budget of 6.5 billion KRW is allocated for projects that actively discover youth who have given up job-seeking and connect them to employment programs such as the National Employment Support System, and 30 billion KRW is allocated for projects supporting customized training for career-interrupted women and others.

This supplementary budget bill also includes provisions to provide emergency employment stabilization funds to 800,000 special-type workers and freelancers whose income has decreased due to COVID-19. The related budget is 456.3 billion KRW. Those 700,000 people who received support payments in the first to third rounds last year will receive 500,000 KRW each, and 100,000 new applicants will receive 1 million KRW each. Existing applicants will receive application guidance text messages on this day, and new applicants will be able to apply online starting from the 12th of next month.

An additional income stabilization fund of 700,000 KRW will be provided to 80,000 corporate taxi drivers whose income has decreased. The budget is 56 billion KRW. For 60,000 workers in visiting care services such as caregivers and disabled child care, as well as after-school instructors, an additional livelihood support fund of 500,000 KRW will be provided. The related budget is 30.9 billion KRW.

Measures to continue support for care and flexible work due to the prolonged COVID-19 situation are also included in the supplementary budget bill. This provides 50,000 KRW per day in care expenses to workers who used family care leave due to closures or suspensions of daycare centers, kindergartens, and schools. However, the budget was reduced from the initial 52 billion KRW to 42 billion KRW.

Support for employment retention subsidies will be expanded. This is a policy where the government supports part of the labor costs. The support rate for 10 industries in management crisis, such as clothing retail and movie screening businesses, will be raised from the existing 67% to 90%, and the support rate period for industries subject to gathering restrictions or bans, which was raised to 90% from January, will be extended for three months until June. A budget of 203.3 billion KRW has been allocated for this. In this regard, the Ministry of Employment and Labor announced on the 17th that six industries, including the movie industry, route buses, and foreigner-only casinos, will be 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. Employers in these 14 industries will receive employment retention subsidies of up to 90% of paid leave and suspension allowances until the end of March next year.

Main Contents of the 2021 Supplementary Budget under the Jurisdiction of the Ministry of Employment and Labor. (Source: Ministry of Employment and Labor)

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