'3 Million KRW Per Person' Expansion of National Employment Support Program Eligibility... Household Assets Limit Raised from 300 Million to 400 Million KRW

Realistic Adjustment of Official Housing Prices... Measures for Increasing Households Exceeding Property Requirements
Easing Participation Criteria for Small Business Owners... Annual Sales Threshold Raised from 150 Million to 300 Million Won

On the afternoon of February 3rd, job seekers who visited the center to apply for unemployment benefits are reflected in the image of the National Employment Support System information poster posted on the bulletin board of the Southern Employment Welfare Plus Center in Yeongdeungpo-gu, Seoul. (Image source=Yonhap News)

[Sejong=Asia Economy Reporter Moon Chaeseok] The support targets for the National Employment Support System, which provides job-seeking promotion allowances of up to 3 million KRW per person using government funds and offers employment support services to vulnerable employment groups such as youth, women with career interruptions, and retired middle-aged workers, will be expanded.

On the 1st, the Ministry of Employment and Labor announced that from the second half of this year, the support targets for the National Employment Support System will be expanded so that more people, including youth facing employment difficulties, can benefit. This was also included in the government's economic policy direction for the second half of the year announced on the 28th of last month.

The National Employment Support System is divided into Type 1, which provides a job-seeking promotion allowance of 500,000 KRW per month per person for up to six months along with employment support services, and Type 2, which provides only employment support services. Employment activity costs are also supported for Type 2 participants. As of the end of last month, the number of participants in the National Employment Support System, which has been in operation since January, reached 262,000.

To receive support under Type 1 of the National Employment Support System, applicants must meet requirements such as household assets of 300 million KRW or less. The Ministry of Employment and Labor has relaxed the household asset requirement for youth to 400 million KRW or less starting today through a revision of the official notice. This measure considers the possibility that youth living with their parents may not qualify for benefits due to their parents' assets.

The significant rise in official housing prices has also been reflected. The Ministry explained, "Due to the realization of official housing prices, the number of households exceeding the asset requirements is expected to increase, which may cause difficulties for youth in need of support to participate in the system."

The Ministry also plans to improve the issue of youth with employment experience being excluded from the youth special support target of the National Employment Support System through related law amendments. The system supports youth with no employment experience and household income below 120% of the median income under the 'selection-type special case,' but there have been criticisms that youth who worked part-time jobs during their school years are excluded from eligibility.

The related law amendment for improving youth special support passed the National Assembly's Environment and Labor Committee's bill subcommittee on the 29th of last month.

The Ministry explained, "(Once the law amendment is completed) youth who have been engaged in income activities such as part-time jobs alongside job-seeking activities will also be able to receive support."

In addition, through a revision of the enforcement decree, the Ministry plans to relax the income requirement for participation in the National Employment Support System from the current 50% or less of the median income to 60% or less, and the asset requirement from 300 million KRW or less to 400 million KRW or less. This is a measure to allow more low-income job seekers to benefit from the system. The Ministry plans to apply this from September after going through procedures such as legislative notice of the enforcement decree.

The participation requirement for small self-employed business owners in the National Employment Support System will also be relaxed from the current annual sales of 150 million KRW or less to 300 million KRW or less. This is a measure to support employment for small business owners who have closed due to difficulties caused by the COVID-19 pandemic and will be applied temporarily until the end of this year.

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