Ministry of Employment Conducting 2nd Support Fund Project for Special Employment and Freelancers
"Errors Occurred During 1st Payment Process, Will Detect and Pay as Much as Possible"
Objections → Payment Decision Followed by Prompt Payment
On the 24th, when the second emergency employment stabilization support fund payment for special employment workers and freelancers began, a client visiting the Employment Welfare Plus Center in Jung-gu, Seoul, is waiting for consultation. Photo by Jinhyung Kang aymsdream@
[Asia Economy Reporter Kim Bo-kyung] The second round of employment stabilization support funds for those affected by the resurgence of the novel coronavirus infection (COVID-19) is progressing smoothly.
However, some voices are complaining that they have not yet received the first round of emergency employment stabilization support funds. The Ministry of Employment and Labor stated, "Since the work was done manually, some were omitted," and added, "Most will be completed around the 5th or 6th."
The Ministry of Employment and Labor recently announced in a press release that "as of September 29, the day before the Chuseok holiday, the second emergency employment stabilization support funds have been paid to 455,600 special-type workers (special employment types, or 'teukso hyeong geunro jongsasa') and freelancers who received the first round of emergency employment stabilization support funds."
This means that 98.2% of the total 463,859 eligible recipients have received the second support payment of 500,000 KRW per person, amounting to a total disbursement of 227.8 billion KRW.
Previously, the Ministry excluded 32,265 insured persons under employment insurance (as of September 10) from about 500,000 first-round beneficiaries and finalized the payment targets including those whose account numbers and other details were pre-verified.
An official from the Ministry explained, "On the 23rd, the final list of recipients was confirmed and a bulk transfer request was made to commercial banks," adding, "The commercial banks, upon receiving the final list, completed account suitability checks and sequentially scheduled account transfers."
Accordingly, about 1,000 cases were paid on the 24th, 6,000 on the 25th, 300,000 on the 28th, and 150,000 on the 29th, completing a total of 455,600 payments before Chuseok. The Ministry plans to pay 1.5 million KRW per person by the end of November to 200,000 new applicants for the second support fund (special-type workers and freelancers) this month.
However, on the ground, there are still voices saying, "I have not even received the first support fund." The first support fund targeted self-employed persons, special-type workers, and freelancers who experienced income or sales declines in March and April. The number of applications totaled about 1.76 million, 1.5 times the initially expected 1.14 million, causing administrative difficulties and delays in payments.
A self-employed person, Mr. A, said, "I received a message on August 24 that the payment decision was made and the payment would be made within two weeks, but the deposit has not been made." Mr. A added, "When I visited the employment center to inquire directly, I was told 'each officer handles it differently' and even 'there is no government budget,' which was very frustrating."
On the 24th, when the urgent employment stability support fund payments for special employment workers and freelancers began, visitors at the Employment Welfare Plus Center in Jung-gu, Seoul, were receiving consultations. Photo by Jinhyung Kang aymsdream@
In response, a Ministry official stated, "There have been errors during the payment process, and we are trying to catch and correct as many as possible." He continued, "Since the work was done manually, some omissions may have occurred," and said, "Most will be completed around the 5th or 6th after the Chuseok holiday."
The Ministry also explained that payments may be delayed if appeals regarding the first support fund are ongoing. If the appeal results in a payment decision, the funds will be paid as soon as possible. If the recipient qualifies for the second support fund, an additional 500,000 KRW will be paid after Chuseok.
Regarding cases where only part of the 1.5 million KRW first support fund was deposited, the Ministry said, "Those who received overlapping benefits from government programs such as local employment response special support projects by local governments, employment success packages, and family care expenses will be excluded or only the difference up to 1.5 million KRW will be paid."
Meanwhile, the Ministry plans to complete payments in early October for those who could not receive the second support fund before Chuseok due to account information mismatches after additional verification. Those who received the first support fund in their own accounts will receive the second support fund (500,000 KRW) without a separate application.
For the 8,259 people who did not receive the second support fund due to payment errors, the Ministry will send text messages to guide them and accept account number verification and change requests in early October.
Lee Jeong-han, Director of Employment Service Policy, said, "We have quickly completed the payment of support funds to alleviate the livelihood burdens of special-type workers and freelancers due to COVID-19," and added, "We will do our best to promptly pay those who have not yet received the second support fund due to errors in the payment process."
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