SME Sector "Regret Over Employment Insurance Rate Increase... Unemployment Benefit Adjustments Needed"

A citizen visiting the Seoul Yeongdeungpo-gu Southern Employment Center is moving to the unemployment benefits application consultation desk. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Kim Bo-kyung] On the 1st, the small and medium-sized enterprises (SME) sector expressed regret over the Employment Insurance Committee's decision to raise the insurance premium rate and urged for a readjustment of unemployment benefit coverage and the introduction of a Korean-style PPP.

The Korea Federation of SMEs stated in a press release that "the SME sector deeply regrets the Employment Insurance Committee's decision today to increase the unemployment benefit account insurance premium rate by 0.2 percentage points starting from July next year."

They added, "Due to this premium rate increase, the majority of business owners and workers who have been steadfastly working despite difficult and challenging circumstances will bear a heavier burden."

Furthermore, they emphasized, "While the deterioration of employment insurance finances is partly due to the COVID-19 crisis, it is also largely attributable to raising unemployment benefit coverage and easing eligibility requirements without considering fiscal realities. The government authorities should strive for fiscal stability by readjusting unemployment benefit coverage to an appropriate level."

They also appealed, "The SME sector has consistently advocated for preventing unemployment through employment promotion. We request active consideration of introducing a Korean-style PPP (Paycheck Protection Program) to promote employment in SMEs that lack sufficient capacity to hire."

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