Self-Employed Workers Enrolled in Employment Insurance Increase by 35% Over 5 Years... Unemployment Benefits Rise Amid Business Difficulties

[Asia Economy Reporter Kim Bo-kyung] The number of self-employed individuals insured under employment insurance has increased by 35% over the past five years.

According to data submitted by the Ministry of Employment and Labor to Kim Hak-yong, Chairman of the National Assembly's Environment and Labor Committee, on the 24th, the number of self-employed insured under employment insurance rose from 16,404 in 2015 to 22,126 as of the end of November last year, marking a 35% increase.

During the same period, the amount of unemployment benefits paid increased by 15%, from 3.22 billion KRW in 2015 to 3.715 billion KRW in 2018, before slightly decreasing to 3.577 billion KRW as of the end of November last year.

Notably, among the self-employed who received unemployment benefits, 3,338 out of 4,573 applicants (73%) cited 'business difficulties' as the reason for their application.

Self-employed individuals who have paid insurance premiums for more than one year within 24 months prior to their business closure can receive unemployment benefits if they close their business involuntarily. However, unemployment benefits are only granted if business difficulties are proven, such as accumulating losses for more than six months or a 20% decrease in average sales over three months compared to the same period the previous year.

Chairman Kim stated, "The uncertainty in self-employment has increased due to the failure of economic policies such as the rapid minimum wage hikes under the Moon Jae-in administration's income-led growth." He added, "Ultimately, the government's policy failures have only increased the tax burden on the people, making a bold shift in economic policy urgently necessary."