Special Employment Support for Tourism and Performance Industries... Government to Pay 90% of Leave and Suspension Allowances

Lee Jae-gap, Minister of Employment and Labor

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[Asia Economy Reporter Kim Bo-kyung] The government has decided to raise the employment retention subsidy limit for the tourism and performance industries, which employ 170,000 workers, to 90% of the suspension (leave) allowance. This employment measure was taken based on the assessment that the tourism and performance sectors have been severely affected by the novel coronavirus disease (COVID-19). Additionally, up to 20 million KRW will be provided to small and medium-sized enterprises (SMEs) and mid-sized companies that establish telecommuting infrastructure such as call centers.

Lee Jae-gap, Minister of Employment and Labor, announced this on the morning of the 16th at a briefing on "COVID-19 Response Employment Measures and Industrial Site Quarantine Management" held at the Government Complex Sejong. The announcement included measures to prevent employment instability in four specially designated employment support sectors: travel agencies, tourism accommodation, tourism transportation, and performance industries. A total of 13,845 workplaces, including hotels, airlines, charter buses, travel agencies, and performance companies, employing 171,476 workers, will be eligible for support for six months.

First, the employment retention subsidy will increase from 75% to 90% of the suspension/leave allowance, and the daily limit will be raised from 66,000 KRW to 70,000 KRW. For a worker with a monthly salary of 2 million KRW receiving a suspension allowance of 1.4 million KRW, under this measure, the government will bear 1.26 million KRW, and the company will bear 140,000 KRW.

The employment retention subsidy can be applied for only if the employer implements suspension or leave without reducing the workforce and pays suspension or leave allowances of at least 70% of the average wage. As of the 13th, a total of 13,250 workplaces have submitted prior plans to the Ministry of Employment and Labor to receive the employment retention subsidy.

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For workers and job seekers in the tourism and performance industries, the limit on living stabilization fund loans has been expanded and income requirements relaxed. The limit for wage arrears living expenses loans has been increased from 10 million KRW to 20 million KRW, the limit for children's education loans has been raised from 5 million KRW per year to 7 million KRW, and the repayment period extended from a maximum of 5 years to 8 years. The income requirement for all living stabilization fund loans is set at a monthly income of 3.88 million KRW.

The self-payment rate for the National Tomorrow Learning Card has been reduced from a maximum of 55% to 20%, and the training cost limit has been increased from 3 million KRW to 4 million KRW over five years. Additionally, workers who have left designated sectors and are unemployed are exempt from income requirements when participating in the Employment Success Package II.

Minister Lee said, "The sectors that have suffered the most direct and severe damage due to COVID-19 have been designated as special employment support sectors," adding, "We will actively guide and promote the system to ensure that no business owners or workers miss out on support due to lack of awareness."

Furthermore, the Ministry of Employment and Labor will support local governments to implement region-specific employment stabilization measures by establishing a "COVID-19 Regional Employment Response Special Support Project" in the supplementary budget. This will back efforts to stabilize the livelihoods of workers in social safety net blind spots such as special-type workers, provide short-term jobs, and offer vocational training.

Minister Lee stated, "Once the budget passes in the National Assembly, we will allocate funds to metropolitan local governments based on the extent of COVID-19 damage, financial independence, and the feasibility of business plans."

In addition, the Ministry will strengthen quarantine management in call centers, which have a high risk of cluster infections, and provide up to 20 million KRW to SMEs and mid-sized companies establishing telecommuting infrastructure, covering up to 50% of employer investment costs. There is also a project supporting up to 20 million KRW, covering 70% of expenses for improving working conditions in small call centers, such as installing simple partitions.

Minister Lee urged, "Call center subcontractors should take responsible measures to dispel concerns about cluster infections and ensure the safety of counselors by improving work environments and expanding telecommuting," adding, "The government will also support necessary assistance during the improvement process in cooperation with local governments."

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