Companies Employing Unemployed Over One Month for 6 Months Receive "6 Million Won Per Person" Support

Ministry of Employment and Labor Announces '2021 Special Employment Promotion Subsidy' Program

Job seekers looking at the recruitment board. Photo by Hyunmin Kim kimhyun81@

[Sejong=Asia Economy Reporter Moon Chaeseok] The government has decided to provide support funds of up to 1 million KRW per worker for six months to companies that hire individuals who have been unemployed for more than a month.

On the 27th, the Ministry of Employment and Labor announced that it will implement the 'Special Employment Promotion Incentive Program' for the first time. From August 25 to September 30, companies that hire individuals who have been unemployed for more than one month or those eligible for employment promotion incentives and sign an employment contract for at least six months will receive support funds. The hired workers must be registered as insured employees (regular workers) under employment insurance. However, only those who have registered as job seekers under the Employment Insurance Act within one year from the date of employment are eligible for support.

For companies meeting the requirements, up to 1 million KRW per newly employed worker per month will be supported for up to six months. According to the announcement (draft), the program may end early if the number of new supported workers reaches 40,000 or if the budget is exhausted this year. Companies that hire new workers between August 25 and September 30 can apply by December 15, and support will be provided within the budget limits.

Employers who hire eligible unemployed individuals and employ them for more than two months can apply for the incentive by submitting an application form in person or by mail to the employment center with jurisdiction over the business location, or apply online through the employment insurance website.

Kim Yujin, Director of Labor Market Policy at the Ministry of Employment and Labor, said, "Although the situation has become difficult due to the spread of COVID-19, we expect that the incentives will help promote the employment of unemployed individuals by companies and improve the employment situation to restore stability in the labor market." He added, "We will also make every effort to promote and manage the execution of the incentives so that businesses in need of support can make good use of them."

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