[2021 National Audit] Employment Minister Acknowledges Deterioration of Employment Insurance Fund Due to Direct Job Creation Policy

Comprehensive National Audit of the Ministry of Employment by the National Assembly Environment and Labor Committee on the 21st

Minister of Employment and Labor An Kyung-duk (right) appears at the National Assembly's Environment and Labor Committee's audit of the Ministry of Employment and Labor held at the National Assembly on the 21st, responding to questions from lawmakers. Photo by Yoon Dong-ju doso7@

[Sejong=Asia Economy Reporter Moon Chaeseok] An Kyung-duk, Minister of Employment and Labor, stated on the 21st during the National Assembly’s audit, "I acknowledge to some extent that the Employment Insurance Fund is deteriorating due to direct job creation programs."

Minister An made this remark in response to a question from Kim Woong, a member of the People Power Party, during the comprehensive audit of the Ministry of Employment and Labor by the Environment and Labor Committee of the National Assembly.

Rep. Kim pointed out that the Employment Insurance Fund, which was as high as 10.3 trillion won at the beginning of the Moon Jae-in administration, is expected to have only about 4.7 trillion won left by the end of this year. Despite injecting 7.9 trillion won from the Public Fund Management Fund over the past two years, only 4.7 trillion won remains, indicating a deficit of 3.2 trillion won. He further criticized that ▲ the government’s short-term and fiscal job policies are causing the exhaustion of unemployment benefits (Employment Insurance Fund) after expiration, and ▲ the public sector is particularly prone to repeated fraudulent claims (34.4% average in the public sector among 18 industries).

Rep. Kim asked, "Even though it is difficult now, to ultimately solve the Employment Insurance Fund problem, shouldn’t the short-term and fiscal job policies be stopped? Don’t you plan to propose to the President to improve policy directions to maintain the Employment Insurance Fund, even at this point?"

Minister An replied, "I acknowledge to some extent that the fund’s (financial soundness) deterioration is due to direct job creation programs," adding, "I believe that issues regarding expenditure efficiency need to be continuously supplemented and improvement measures prepared." He continued, "Regarding measures to improve repeated claims, the Ministry of Employment and Labor has previously announced countermeasures and plans to submit a bill to the National Assembly soon."

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