Vice Minister of Economy and Finance: "Labor Transition" Including Coal Power and Car Workers' Job Changes to Occur Soon

5th Meeting of the Human New Deal Subcommittee Held on the 3rd

"530,000 Artists and Special Employment Workers Enrolled in Employment Insurance
270,000 Youth and Others Receive National Employment Support Services"

Raised Greenhouse Gas Reduction Targets Impact Coal Power and Vehicles
82.2 Billion Won Budget Reflected for Supporting 100,000 Job Transitions Next Year

Lee Eok-won, Vice Minister of Strategy and Finance, presides over and delivers opening remarks at the 5th meeting of the Human New Deal Subcommittee of the Korean New Deal Advisory Group on the 3rd at the HJ Business Center in Gwanghwamun, Seoul. (Photo by Ministry of Strategy and Finance)

[Sejong=Asia Economy Reporter Moon Chaeseok] Lee Okwon, the 1st Vice Minister of the Ministry of Economy and Finance, said on the 3rd, "With the confirmation of the 2030 Nationally Determined Contribution (NDC) enhancement plan, concentrated labor transitions will occur in high carbon-emission sectors such as coal power generation and automobiles within a relatively short period." He predicted that as the structure shifts mainly to low-carbon industries, intensive restructuring will follow, potentially forcing workers in these sectors to change or transfer jobs, with the speed expected to be very rapid.

Vice Minister Lee chaired the 5th meeting of the Human New Deal Subcommittee of the Korean New Deal Advisory Group that morning and made this assessment. Participants reviewed the current status of the 11.1 trillion KRW scale Human New Deal implementation and the follow-up measures, including the status and challenges of the "Fair Labor Transition Support Plan."

Vice Minister Lee said, "The world is experiencing a major transition to a low-carbon and digital economy," adding, "Our country has also confirmed an NDC enhancement plan to reduce national greenhouse gas emissions by 40% by 2030 compared to 2018, and concentrated labor transitions are expected to occur in sectors such as coal power generation and automobiles within a relatively short period." He further stated, "Digitalization is expected to have a 'shallow and broad' impact across all industries, with accelerated job impacts particularly in some low-skilled manufacturing jobs and offline and face-to-face service sectors."

The government has allocated 822 billion KRW in next year’s budget for the "Fair Labor Transition Support Plan," which supports 100,000 workers in internal combustion engine automobiles and coal-fired power generation to transition their jobs by 2025. Customized support will be provided based on short-, medium-, and long-term diagnoses. Vice Minister Lee said, "For the internal combustion engine and coal-fired power generation sectors, where short-term and concentrated transitions are expected, we will encourage employment retention through job transitions for current workers and strengthen pre-transition preparation and rapid reemployment support for unavoidable workforce adjustments." He added, "For sectors like steel and petrochemicals, where medium- to long-term transitions are expected, we will immediately apply the labor transition support system and respond swiftly if signs of job reduction are detected."

Digitalization support will continue even for workers not in high carbon-emission sectors. Vice Minister Lee said, "In response to digitalization, we will expand and strengthen support for companies’ employment-friendly digital transitions and workers’ digital skill adaptation training, and expand vocational training support such as the National Tomorrow Learning Card so that all citizens can acquire digital competencies," adding, "We will prepare related legislation early." The Learning Card is a policy that provides vocational skill development funds ranging from 3 million to 5 million KRW per person for up to five years, starting from the third year of university, two years before graduation.

Vice Minister Lee also announced achievements related to the nationwide employment insurance policy. As of the 14th of last month, about 80,000 artists and approximately 450,000 workers in 12 special employment types (Special Employment Workers, SEWs), including insurance planners, newly enrolled in employment insurance. From January next year, employment insurance will be expanded and applied to SEWs in quick service (including delivery drivers) and substitute driving sectors. The National Employment Support System, which provides job-seeking promotion allowances of up to 3 million KRW per person to vulnerable employment groups such as youth, middle-aged, and women with career interruptions, is currently serving more than 270,000 people.

Customized living stability support for youth will also be strengthened. Policies to be implemented include ▲ government matching of savings amounts by income level and savings incentives (asset formation), ▲ interest-free monthly rent loans and extension of preferential subscription savings account periods (housing stability), and ▲ increased limits on national scholarship support and support for student loan debt adjustment (reducing educational expenses). Additionally, by 2025, the government plans to cultivate more than 8,000 talents in semiconductors, 20,000 in bio-health, and 3,000 in future automobiles in new industries.

Vice Minister Lee said, "The government will do its best to ensure that the daily life restored in the With-Corona (gradual recovery of daily life) era becomes a 'better recovery' that leads to healing, restoration, and an inclusive community," adding, "We will strive to achieve a complete economic recovery where the economy, employment, and people’s livelihoods improve together as soon as possible."

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