by Lee Dongwoo
Published 26 Apr.2026 11:17(KST)
Kim Younghoon, Minister of Employment and Labor, has announced plans to introduce the so-called "Fair Allowance," which will provide additional compensation to short-term workers experiencing employment instability.
On April 26, during his appearance on "KBS Sunday Diagnosis Live," Minister Kim stated, "Relevant ministries are currently discussing a provisionally named 'Fair Allowance,' which would grant higher allowances to workers who face greater employment instability due to short-term contracts. We will announce specific measures soon."
Kim Younghoon, Minister of Employment and Labor, is speaking about improving subcontracting operations in the public sector at the Labor Safety Related Ministers' Meeting held at the Government Complex Seoul in Jongno-gu, Seoul on April 16, 2026. Photo by Cho Yongjun
원본보기 아이콘He also referred to the French example, where additional allowances are paid to workers who leave their jobs after less than one year of service, clarifying his intention to design the system in a way that strengthens compensation as employment instability increases.
Improvements to the overall non-regular employment system are also being pursued. Minister Kim pointed out that the current two-year limit has resulted in the unintended consequence of creating "1 year and 11 months jobs." He said that a fact-finding survey will be conducted by June, after which discussions will continue at the Economic, Social and Labor Council.
He emphasized, "If the government presents guidelines first, there may be misunderstandings that we are instrumentalizing social dialogue. We will derive solutions by gathering opinions from labor unions, management, and experts."
Regarding the recent death of a Cargo Solidarity Union member, Minister Kim identified the core issue not as the so-called "Yellow Envelope Law," but rather the multi-layered subcontracting structure. He explained that this resulted from the failure of the bargaining structure between primary contractors and subcontractors to function properly.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.