Up to 1 Million KRW Support for Unpaid Leave Workers at Seoul Businesses with Fewer Than 5 Employees

Secured 25 Billion KRW in Supplementary Budget for 'Seoul-type Employment Retention Support Fund' Project Targeting 25,000 People on Leave for Over 5 Days Since COVID-19 Serious Phase

Due to the impact of the novel coronavirus disease (COVID-19), a temporary closure notice is posted on a small business store in Jung-gu, Seoul on the 4th. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Jo In-kyung] Due to the COVID-19 pandemic, workers at small business establishments with fewer than five employees in Seoul who take unpaid leave can receive a leave allowance of 25,000 KRW per day, up to a maximum of 500,000 KRW per month, for two months (based on 40 days of unpaid leave).

Seoul City announced on the 30th that it will begin accepting applications for this "Seoul-type Employment Retention Support Fund" starting from the 1st of next month to support employment stability and livelihood maintenance for workers at small businesses where paid leave is realistically difficult.

The government’s COVID-19 related employment retention support measures announced on the 28th of last month focused on paid leave support. Although there is a system supporting unpaid leave, the eligibility conditions require a leave period of at least 90 days and a minimum of 10 employees on leave per business, making it practically difficult for small businesses with fewer than five employees to receive support.

The Seoul-type Employment Retention Support Fund targets workers enrolled in employment insurance at small businesses with fewer than five employees located in Seoul who have taken unpaid leave for five days or more since February 23, when the COVID-19 alert level was raised to "serious." Priority support is given to workers in industries severely affected by COVID-19, such as tourism, wholesale and retail, lodging and restaurants, as well as workers at technology startup companies struggling due to the overall economic downturn.

Support is provided for one worker per small business experiencing business difficulties, with up to two workers supported in the tourism sector, which has been hit particularly hard.

The city has urgently allocated 25 billion KRW (including national funds) in the supplementary budget for this project and expects to support at least 25,000 unpaid leave workers through this fund.

As of 2018, there are 306,106 small business establishments with fewer than five employees (excluding one-person small businesses) in Seoul. Among these, 5,094 are tourism businesses, 11,431 are technology startups, and the remaining 289,581 are other types of businesses.

Applications for the employment retention support fund should be submitted to the district office with jurisdiction over the small business’s address. Applications can be made in person, online, by mail, or fax, and each district office also offers a service to visit workplaces to receive applications upon request.

Applications for unpaid leave workers from the previous month will be accepted from April 1 to the 10th of each month, and payments will be made directly to the eligible workers after review. If the number of applicants exceeds the support capacity of a district, priority will be given to workers with longer employment insurance enrollment periods and to businesses with lower sales revenue.

For more details, contact the Seoul City Job Policy Division or the job-related department of the relevant district office.