Employment Minister: "Plan to Stabilize Employment Insurance Finances by End of August... Difficult to Raise Premium Rates" (Comprehensive)

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Moon Chaeseok] An Kyung-duk, Minister of Employment and Labor, stated, "We will definitely prepare a plan to revitalize the employment insurance fund's finances by the end of August at the latest." Regarding the insurance premium rate, he said, "It is difficult to raise it immediately." He judged that support for 'work experience' related to youth employment policy is the most important and predicted that the employment market will recover "as early as the end of October or at the latest in the first half of next year." He clearly stated his position that companies where serious industrial accidents occur will definitely be subject to work suspension measures, and firmly rejected the business sector's demand for government-level guidelines on labor union activities within workplaces by non-working union members (dismissed/unemployed).

On the 30th, Minister An explained the government's policies on various issues such as employment, industrial accidents, and labor during a one-hour press briefing at the Government Complex Sejong. He mentioned that by August, a plan to revitalize the employment insurance finances will be prepared, and next month, follow-up employment measures for the Youth Hope Ladder (comprehensive measures for employment, housing, and asset formation) will be announced.

"Key Policies During Term: Industrial Accidents and Youth Employment"

Ulsan Police Agency, together with the National Forensic Service and others, conducting a joint investigation at the accident site of Korea Zinc Onsan Smelter in Ulju-gun, Ulsan on the 3rd. Two workers died in an accident at this factory on the 30th of last month. (Photo by Yonhap News)

Minister An identified reducing industrial accident incidents and youth employment measures as the most important policies during his term. Regarding industrial accidents, he emphasized, "I believe the most important thing is to protect the lives of those working in industrial sites and ensure they can safely return home."

He shared various opinions on the enforcement decree of the Serious Accident Punishment Act related to industrial accidents, the stabilization of the 52-hour workweek system, and regulations on labor activities by non-working union members under the amended Labor Union Act. Regarding the Serious Accident Punishment Act, as previously mentioned, he clearly stated, "Work suspension measures will be taken at workplaces where serious accidents occur." Minister An said, "When a death occurs due to an industrial accident, work suspension causes financial damage to companies, but preventing deaths is more important. I believe it is crucial to suspend work and have companies prepare improvement measures."

Regarding the 52-hour workweek system, he announced plans to prepare and implement special extended work guidelines next week due to delays in the special entry of foreign workers. Minister An said, "Many people in workplaces are not well aware of flexible work systems and special extended work systems, so it is important to promote these systems well. For workplaces with 30 to 49 employees, where the 52-hour workweek system will apply from tomorrow, we will prepare and start applying special extended work guidelines next week to respond to the surge in workload caused by delays in foreign worker entry."

He firmly rejected the preparation of government-level guidelines on labor activities by non-working union members demanded by the business sector. Minister An said, "Since fairness by industry, existing practices, and access procedures vary greatly, it is not desirable for the government to regulate all situations in detail. As the government has continuously stated, it is preferable to determine non-working union members' access and union activities through internal rules and collective agreements." He added, "In actual workplaces, there are established customs regarding the access of union chairpersons and executives. We have no plans to prepare separate guidelines."

"Plan to Revitalize Employment Insurance Fund Finances Will Definitely Be Made by August"

[Image source=Yonhap News]

Minister An is well aware that the government announced last year a policy to extend employment insurance to all citizens by 2025 and that concerns about the depletion of the employment insurance fund due to the COVID-19 impact are significant. However, he said it is difficult to raise the insurance premium rate immediately.

Minister An explained, "Although the economic situation is recovering this year, it is not easy to raise the insurance premium rate immediately. Considering the changed economic conditions, we are estimating the medium- to short-term fiscal balance, and I believe that 'expenditure negotiations' and 'business structure reorganization' are priorities." He added, "We intended to prepare and announce the financial revitalization plan in the first half of the year, but it seems it will take more time. Nevertheless, I think it must be prepared by the end of August at the latest."

"Urgent Task in Youth Policy Is to Focus on Work Experience"

[Image source=Yonhap News]

Minister An revealed that he has heard many youth complaints that even if they cannot get a job immediately, they want to gain 'work experience.' He said, "The young people I met consistently said, first, 'It is difficult to find a job,' and second, 'Even if I cannot get a job, I want to receive a lot of work experience and job training during the job preparation period.'"

He then explained four main principles of youth employment policy. Specifically, ▲The government's role is to support private sector job creation ▲Support for sectors with high demand for personnel such as software (SW) through the 'K-Digital Training' policy ▲To improve youth-friendly recruitment culture, establish a platform with economic organizations through the 'Youth Employment Support Project' policy ▲Expand the employment information platform 'University Job Center' from focusing on enrolled students to graduates and unemployed individuals.

He also accepted criticism that tailored employment policies for the so-called MZ generation (born in the 1980s to 2000s) are insufficient. Minister An said, "When listening to young people in the field, there are many demands for work-family balance, workplace harassment prevention, appropriate compensation according to job duties, and organizational culture improvement, so government policies need to change. The Ministry of Employment and Labor urgently needs to increase private sector jobs in new industries with growing demand such as digital and low-carbon sectors and significantly strengthen SW job training."

"Employment Recovery in 30s and 40s... Korea's Employment to Recover Between October and First Half of Next Year"

Minister An diagnosed that employment conditions for people in their 30s and 40s are improving. Although the number of employed people is decreasing due to population decline, the employment rate for those in their 30s and 40s rose by 0.6 percentage points last month.

Regarding criticism that job creation policies focusing on the elderly are excessively executed, he responded that the proportion is small compared to the total job budget. Minister An said, "Of the expected 30 trillion won job budget this year, only about 10%, or 3.2 trillion won, is for direct job creation. However, about 41% of the direct job creation budget is for elderly jobs. Considering the high elderly poverty rate and rapid aging, and the insufficient social safety net for the elderly, supporting the elderly is a responsibility the government must fulfill, and I hope this is understood."

He predicted that Korea's employment market will recover as early as October or at the latest in the first half of next year. Since employment is a lagging indicator, he expects the recovery speed to be slower than financial and real economy indicators. Minister An said, "Opinions vary among experts, but based on the current trend, the employment recovery point is estimated to be as early as October or as late as the first half of next year. This year, to accelerate the recovery speed, it is necessary to inject government finances, which is why employment support is included in this supplementary budget. However, I expect the budget for unemployment benefits to decrease next year."

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