Government Announces 'Korean New Deal Comprehensive Plan'
Plans to Expand Employment Safety Net for Special Types of Workers
On the 10th, citizens are entering the unemployment benefits briefing room at the Seoul Employment Welfare Plus Center in Jung-gu, Seoul. Photo by Mun Ho-nam munonam@
[Asia Economy Reporter Kim Bo-kyung] A 'universal employment insurance system' to protect all workers in preparation for economic crises such as the COVID-19 pandemic will be implemented step by step.
The comprehensive plan for the 'Korean New Deal,' announced by the government on the 14th, includes measures to bring all citizens under the employment safety net.
The government plans to gradually expand the coverage of the primary employment safety net, the employment insurance system, to establish a universal employment insurance system applicable to all workers.
The first step is to include artists and workers in special employment types (teukso hyeongtae geullo jongsa, or teukgo) who have been outside the scope of employment insurance. The amendment to the Employment Insurance Act to apply employment insurance to artists passed the National Assembly last May. The government has also begun the legislative process to include teukgo workers under employment insurance coverage.
The secondary employment safety net, the National Employment Support System, will be implemented starting January next year. This Korean-style unemployment assistance system provides low-income job seekers with a job-seeking promotion allowance of 500,000 won per month for six months and offers customized employment support services.
The scope of coverage for industrial accident insurance will also be expanded. The number of teukgo occupations covered by industrial accident insurance increased from 9 to 14 as of the 1st of this month.
Additionally, the comprehensive plan includes projects such as the Youth Digital Job Project to support young people facing difficulties in finding employment due to hiring freezes or delays caused by the COVID-19 crisis.
The Youth Digital Job Project is a program where the government subsidizes part of the wages for a certain period to small and medium-sized enterprises that hire young people for information technology (IT)-related jobs.
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