Unpaid Leave Workers, Special Employment Types and Freelancers to Receive 1 Million Won... 270,000 Won Advance Payment for Senior Job Programs

The 3rd Emergency Economic Meeting Held... Announcement of Livelihood Support Measures for Vulnerable Groups Affected by COVID-19
Emergency Welfare Support for Unpaid Leave Workers and Special Employment Types... 2 Million Won Support for Businesses Scheduled to Close

[Asia Economy Reporter Kim Bo-kyung] The government will provide up to 1 million won each to 100,000 unpaid leave workers and 100,000 special-type workers (teukgo) and freelancers for emergency livelihood stabilization support.

On the 30th, the government held the '3rd Emergency Economic Meeting' chaired by President Moon Jae-in and announced additional livelihood support measures for vulnerable groups responding to the novel coronavirus infection (COVID-19) crisis.

This measure focuses on supporting the livelihood stabilization of vulnerable groups who are in the blind spots of existing employment safety nets such as the employment insurance system. The targets include unpaid leave and furloughed workers, teukgo and freelancers, construction day laborers, and young job seekers who have been directly hit in employment and livelihood due to the COVID-19 crisis.

Monthly 1 Million Won Payment to COVID-19 Affected Unpaid Leave Workers, Teukgo, and Freelancers

First, the government will provide livelihood stabilization support funds of up to 1 million won to 100,000 unpaid leave and furloughed workers across 17 metropolitan local governments. Support will be provided at 500,000 won per month for two months. A total of 37 billion won and 33 billion won will be invested in Daegu and Gyeongbuk, designated as special disaster areas, respectively, and the remaining 15 local governments will receive differentiated support ranging from 3 billion to 15 billion won.

Separately, livelihood stabilization support funds of up to 1 million won will also be given to 100,000 teukgo and freelancers. Payments will be made at 500,000 won per month for up to two months.

The budget for the livelihood stabilization support fund will be covered by the recently passed supplementary budget (chugyeong). Among the supplementary budget projects, the 'Regional Employment Response Special Support Project' has a total budget allocation of 200 billion won, of which 80 billion won will be invested in supporting unpaid leave and furloughed workers, and 100 billion won in supporting teukgo and freelancers. It is expected that support funds will be provided by local governments upon proof of damage caused by COVID-19.

The scope of emergency welfare support will also be expanded. Originally, emergency welfare support funds were only provided to low-income groups with assets and financial assets meeting the criteria below 75% of the median income. This will be expanded to include unpaid leave and furloughed workers, teukgo, and others who are struggling to maintain their livelihood due to the COVID-19 crisis. Monthly payments of 650,000 won will be made based on the number of household members. For example, a single-person household will receive 455,000 won, a two-person household 775,000 won, and a four-person household 1.23 million won. One month of priority support will be provided first, and after local government review, the support period can be extended up to six months.

Additionally, the job-seeking activity support fund (500,000 won for three months) paid to participants of the Employment Success Package (Chwiseongpae) for livelihood stabilization will also be extended to teukgo, freelancers, and others whose work opportunities have decreased by broadly recognizing the scope of job-seeking activities. The Chwiseongpae budget of 79.7 billion won secured through the supplementary budget will be utilized.

Asia Economy DB=Photo by Hyunmin Kim kimhyun81@

Customized Support for Small Business Owners Opening/Closing Shops and Youth Job Seekers... 270,000 Won Advance Payment for Senior Jobs

In addition, costs incurred when small business owners affected by COVID-19 open or close stores will also be supported. When opening a new store, reopening costs such as material costs, promotional marketing expenses, utility and management fees, and hygiene and quarantine expenses will be supported up to 3 million won for 189,000 locations.

For businesses planning to close, business closure consulting and store demolition costs will be supported up to 2 million won. A total of 19,000 locations will be supported, focusing on 8,200 locations in the special disaster areas of Daegu and Gyeongbuk.

The eligibility criteria for youth job-seeking activity support funds will also be relaxed. The Youth Job-Seeking Activity Support Project provides 500,000 won per month for up to six months to low-income youth engaged in job-seeking activities. Currently, youth who have participated in Chwiseongpae could not apply for job-seeking activity support funds within six months, but this restriction has been lifted. The two programs have been improved to be used consecutively to ensure no difficulties in youth job-seeking activities.

The government will advance the monthly salary of 270,000 won for senior jobs. It is expected that 543,000 participants engaged in public interest activities working 30 hours per month will benefit.

Additionally, an emergency livelihood stabilization loan system will be newly established for construction day laborers. Interest-free loans of up to 2 million won will be provided to about 87,000 workers. However, this will be implemented temporarily until August.

Lee Jae-gap, Minister of Employment and Labor, stated, "We plan to immediately support the emergency livelihood stabilization of about 500,000 vulnerable people who are greatly affected by the COVID-19 crisis," and added, "From April, we will promptly provide support to those in need of livelihood stabilization to offer practical help."

He continued, "We will make every effort to ensure that the bills currently pending in the National Assembly, such as the introduction of the National Employment Support System and the application of employment insurance to teukgo, can be promptly passed within the first half of the year by closely communicating with the National Assembly."