Extension of Designation for Special Employment Support Industry for Aircraft Manufacturing Until Year-End

Gyeongnam Province, "Efforts to Extend Partnership with Korea Aerospace Association Bear Fruit"

Effects on Employment Retention, Skilled Technician Protection, and Industrial Competitiveness Secured

The scene of assembling an aircraft at an aircraft manufacturing company.

[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Seryeong] Gyeongsangnam-do announced on the 18th that the extension of the designation of the aerospace manufacturing industry as a special employment support sector was approved at the government's Employment Policy Council.

The Employment Policy Council newly designated the taxi transportation industry as a special employment support sector and extended the designation period for 14 industries, including aerospace manufacturing, until December 31 of this year.

The aerospace manufacturing industry was first designated as a special employment sector at the 2nd Employment Policy Council in 2021 and was scheduled to expire on March 31, but the designation period has been extended by nine months.

The province expects that with the extension of the designation, about 14,610 workers employed at 495 aerospace manufacturing companies nationwide will benefit, and it will help maintain employment for 12,147 workers at 218 companies in Gyeongnam.

The special employment support sector designation system is a system that designates industries where employment conditions have rapidly deteriorated or are expected to deteriorate, easing the support requirements such as employment maintenance subsidies compared to the general employment support system, increasing the level of support to promote employment stability and stabilize the livelihoods of the unemployed.

Gyeongsangnam-do stated that as the aerospace manufacturing industry in the province faced difficulties due to the impact of COVID-19, it has been steadily working with the Korea Aerospace Industries Association to extend the special employment support sector designation.

The aerospace manufacturing industry is directly related to national security, and due to the industry's characteristics where maintaining skilled workers is linked to competitiveness, maintaining employment is important.

They explained that if the ecosystem of the industry collapses, domestic competitiveness in new growth industries such as the space industry and Urban Air Mobility (UAM) will decline, making it difficult to enter new industries.

The main benefits the aerospace manufacturing industry receives from the government through the special employment support sector designation include ▲ increased level of employment maintenance subsidies ▲ increased training costs for vocational skill development training ▲ raised limits on livelihood loans ▲ extended payment deadlines for employment, industrial accident insurance, and health insurance premiums ▲ and deferment of delinquent tax collection.

Employers can receive 90% (67% for general industries) of the paid leave and suspension allowances as government employment maintenance subsidies, and the support limit will be raised from 66,000 KRW to 70,000 KRW per day.

If employers provide vocational skill development training to their employees, training costs will be preferentially supported up to 150% (100% for general industries) of the support unit price according to the employer vocational skill development training support regulations.

The support limit can also be increased from 240% to 300% of the paid insurance premiums, and the livelihood loan limit for vocational training for workers will be raised from 10 million KRW to 30 million KRW.

Kim Young-sam, Director of the Industrial Innovation Bureau, said, “The extension of the special employment sector designation will help aerospace manufacturing companies in Gyeongnam struggling due to COVID-19,” adding, “It is expected to be a great boost to the economic recovery of western Gyeongnam, where aerospace manufacturing is a key industry.”

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