Metropolitan Root Companies Receive Minimum Wage Support for One Year; Dormitories Provided for Food Companies in Chungbuk... 'Customized Solutions for Vacancy Jobs by Region'

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In the future, food manufacturing companies in Chungcheongbuk-do suffering from labor shortages will be able to receive support for commuting vehicles and dormitory rental costs to more easily recruit unemployed workers from nearby cities. Small-scale root companies in Gyeonggi-do, which suffer from chronic labor shortages due to wage gaps with Seoul, will receive job leap incentives for hiring regular employees of all ages. The government explained that it has prepared customized projects to resolve vacant jobs by considering the conditions of vacant jobs by region and the demand of local governments.

On the 16th, the Ministry of Economy and Finance and the Ministry of Employment and Labor announced the “3rd Plan to Resolve Vacant Jobs” at the Emergency Economic Ministers’ Meeting. Following the job measures by industry announced in March and July, the third plan focuses on selecting 2 to 3 core industries for each local government and preparing the most necessary measures. To alleviate the phenomenon of avoiding work at local companies due to population outflow and aging in rural areas, a “regional customized vacant job resolution project” will be implemented with a two-track approach: the “regional workforce inflow project” and the “work environment improvement project.”

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For example, food production and processing companies in Chungcheongbuk-do experiencing labor shortages will receive support for commuting vehicles and accommodations. Small-scale food companies in Chungcheongbuk-do are mainly located in Eumseong and Jincheon, where aging is severe, so it is judged that employment of idle workers from nearby cities must be promoted to resolve labor shortages. Accordingly, the government plans to expand indirect labor cost support from 300,000 KRW to 600,000 KRW per month and relax the conditions for elderly employment subsidies from age 60 to age 55 to improve the employment environment.

In addition, small-scale root companies in Gyeonggi-do suffering from chronic labor shortages due to wage gaps with large companies in Seoul will receive preferential support for job leap incentives. The job leap incentive is a system that pays at least 100% of the minimum wage for up to one year when hiring youth facing employment difficulties (aged 15 to 34) as regular employees and maintaining employment for more than six months. In the future, not only youth but also regular employees of all ages will be supported with an amount exceeding 120% of the minimum wage. This is intended to provide practical benefits considering the reality of a shortage of young job seekers due to the characteristics of the region and occupation.

Small and medium-sized tourism companies such as hotels and condos in Jeju-do are reported to have difficulty securing manpower due to poor accessibility and low wages, and transportation and monthly rent are supported for commuters from remote areas such as Seogwipo-eup and myeon to improve convenience for working in peripheral areas. A Ministry of Economy and Finance official explained, “We have segmented the demands of each region and relaxed necessary regulations or established support systems accordingly.” In addition, the government plans to distribute a menu-style list of government support projects that each local government can separately request to resolve vacant job problems. Each local government can select the projects they need from the menu and request support.

Along with this, the expansion of the “regional specialized visa quota,” which has been operated as a pilot project to enable foreign workers who can fill vacant jobs to work and settle in the region, is under review. The regional specialized visa project is a foreigner settlement support project to respond to the problem of population decline in the region. Local governments selected for the pilot project can select excellent foreign talents within the region to receive residence visas. Allowing a change of stay status (E-7) for overseas students who graduate from domestic universities to complete on-site training on the condition of being hired in core vacant job industries is also being pursued. Expansion of quotas for simple foreign workforce (E-9), seasonal workers (E-8), and other visas reflecting regional demand is also being considered, along with encouraging regional allocation.

In addition, the Emergency Economic Ministers’ Meeting on the same day discussed “Monitoring the Israel-Hamas Situation,” future response directions following the implementation of the EU Carbon Border Adjustment Mechanism, improvement plans for pet insurance systems, and measures to strengthen quality control and supply stability of major procurement materials.

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