Employment Retention Subsidy Increased by 480 Billion Won... "Support Funds for Special Types, Freelancers, and Youth by November at the Latest"

Employment and Labor Crisis Response TF Meeting... Supplementary Budget Project Explanation
"Focus on Job Stability, Livelihood, and Job-Seeking Support on the Ground"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] Lee Jae-gap, Minister of Employment and Labor, announced on the 23rd, "We will actively support employment stability on the ground by utilizing the 480 billion KRW employment retention support fund budget additionally secured through the 4th supplementary budget."

At the 'Employment and Labor Crisis Response TF' policy meeting held that day, Minister Lee said, "We will ensure that support funds are provided without fail to workplaces that require additional leave or furlough measures due to the prolonged impact of COVID-19."

The day before, the National Assembly passed the 4th supplementary budget worth 7.8 trillion KRW in the plenary session. Accordingly, the supplementary budget under the jurisdiction of the Ministry of Employment and Labor was finalized at 1.4955 trillion KRW. During the National Assembly review process, the support budget for taxi corporation drivers (1 million KRW per person) was increased by 81 billion KRW compared to the original government proposal.

Regarding the Ministry of Employment and Labor's supplementary budget projects, Minister Lee explained, "The focus is on providing stronger support for employment stability between labor and management on the ground and supporting the livelihood and job-seeking activities of special types of workers (teukgo), freelancers, and youth."

The employment retention support fund budget, which supports employers who have taken employment retention measures such as leave or furlough amid business difficulties caused by the COVID-19 pandemic, has increased to a total of 2.68 trillion KRW. Measures such as extending the support payment period by 60 days (from 180 days to 240 days) will benefit an additional 240,000 people. As of the 22nd, the number of workplaces receiving employment retention support funds reached 66,000, with 690,000 workers benefiting.

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki (third from the left) is delivering opening remarks at the "8th Emergency Economic Meeting Joint Briefing" held at the Government Seoul Office in Jongno-gu, Seoul, on the afternoon of the 10th. From the left, Minister of Employment and Labor Lee Jae-gap, Minister of Science and ICT Choi Ki-young, Deputy Prime Minister Hong, Minister of Health and Welfare Park Neung-hoo, and Minister of SMEs and Startups Park Young-sun. Photo by Kim Hyun-min kimhyun81@

Additionally, Minister Lee stated, "We will provide additional emergency employment stability support funds to 700,000 special types of workers (teukgo) and freelancers who are outside the employment safety net and urgently need additional support."

Among them, 500,000 recipients of the 1st emergency employment stability support fund will receive 500,000 KRW, and 200,000 new applicants, including special types of workers and freelancers whose income has decreased due to the resurgence of COVID-19, will receive 1.5 million KRW.

Special job-seeking support funds of 500,000 KRW will be provided to 200,000 low-income unemployed youth. This decision reflects the difficult employment conditions faced by young people due to reduced or postponed hiring and prolonged job-seeking periods caused by COVID-19.

Minister Lee said, "For those among the special types of workers, freelancers, and youth support recipients whose eligibility can be confirmed through mid-term secured data, we plan to complete payments as quickly as possible before Chuseok."

Accordingly, it is expected that ▲500,000 recipients of the 1st emergency employment stability support fund and ▲60,000 unemployed youth who participated in job-seeking support programs from 2019 to 2020 will receive support funds before Chuseok.

Minister Lee added, "For new applicants who require additional screening procedures, we will promptly verify requirements such as income reduction and do our best to ensure that payments are made without omission by November."

Furthermore, through the 4th supplementary budget, the job-seeking allowance budget was increased by 200 billion KRW, raising the total to 13.1 trillion KRW. The total number of people eligible for support this year reached 1.89 million. Family care costs were also increased by 53.6 billion KRW, enabling support of up to 50,000 KRW per day for a maximum of 15 days per person (20 days for single-parent families).