Companies Hiring Employees in September Without Receiving Employment Incentives Can Apply for Additional Support

Ministry of Employment Reports Support for Non-Recipients of Special Employment Promotion Incentives at Cabinet Meeting

Unemployment benefit recipients receiving consultations at the Seoul Western Employment Welfare Plus Center in Mapo-gu, Seoul, on September 28./Photo by Jinhyung Kang aymsdream@

[Sejong=Asia Economy Reporter Moon Chaeseok] The government announced that it will accept advance applications for the 'Special Employment Promotion Subsidy' from January 3 to 24 next year. This is to support business owners who hired new employees expecting the subsidy but did not receive it due to a shortage of government funds.

The Ministry of Employment and Labor reported at the Cabinet meeting on the 28th about measures to support small and medium-sized enterprise (SME) business owners who were unable to receive the Special Employment Promotion Subsidy due to the exhaustion of government funds at the end of October. Accordingly, the Ministry will accept advance applications through the Employment Insurance website and employment centers from January 3 to 24.

The 'Support for Non-Recipients of the Special Employment Promotion Subsidy' provides up to 7.2 million KRW per newly hired regular employee for one year to SME (priority support target companies) business owners who newly hired unemployed individuals registered with employment security agencies for at least one month before employment as regular employees in September this year. However, some industries such as gambling and entertainment are excluded from support.

The Ministry of Employment and Labor previously implemented the 'Special Employment Promotion Subsidy' as a temporary project to support self-employed individuals hit hard by COVID-19. The main point was to provide up to 1 million KRW per month for SMEs and 800,000 KRW for mid-sized companies per hired employee working for more than six months, for up to six months. Additionally, another 600,000 KRW per month (for SMEs) is given for six more months, allowing a maximum of 9.6 million KRW per person.

Initially, the subsidy application target was set for companies that newly hired employees from March 25 to September 30 and maintained employment for more than two months. The goal was 55,000 applicants, but applications were low until summer, so the period was extended to the end of the year. From September, applications surged, exhausting the related budget, and the project was closed early on October 31. Self-employed individuals who hired employees after September, relying on the government's promise, had to take out loans once again.

Minister of Employment and Labor An Kyung-duk said, "Through this measure, we will be able to assist SME (priority support target companies) business owners who hired new employees during the COVID-19 employment crisis but could not apply for the subsidy. We will continue to monitor employment conditions and communicate with the field to ensure that necessary support is provided to companies."

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