The 4th Disaster Relief Fund Exceeds 20 Trillion Won... Including Delivery Workers (Comprehensive)

Job Insecurity in 11 Industries for Special Employment
Monthly 500,000 Won + α, Extended for 3 Months

[Image source=Yonhap News]

[Asia Economy Reporters Jang Sehee, Moon Chaeseok] It is projected that the funding scale for the 4th disaster relief fund will be at least 20 trillion won. The scale is expanding as the support targets include not only small business owners and self-employed individuals but also special employment workers (teukso) such as delivery drivers and private tutors. There is a growing possibility of another clash between the ruling party and the government over the size of the disaster relief fund.

Kim Jong-min, Supreme Council Member of the Democratic Party of Korea (National Assembly member), mentioned on a radio broadcast on the 17th regarding the scale of the 4th disaster relief fund, referring to businesses under gathering restrictions and special employment workers, stating, "At least 20 trillion won or more is necessary," and added, "The Ministry of Economy and Finance somewhat agrees with this, but there is a difference in the level of increase needed."

Kim’s remarks show some differences from the government’s stance. The Ministry of Economy and Finance has remained silent on the specific scale but intends to allocate a budget similar to the 3rd disaster relief fund of 9.3 trillion won.

The ruling party’s move to increase the scale of the 4th disaster relief fund is due to efforts to expand the payment targets. The ruling party and government have decided to include special employment workers such as delivery drivers and private tutors in this disaster relief fund. When the government paid the 3rd disaster relief fund last month, it provided a total of 3.75 billion won in funding under the name of ‘Emergency Employment Stability Fund’ to a total of 700,000 people (existing 650,000 people received 500,000 won each; new 50,000 people received 1 million won each).

The payment scale is expected to be similar to the 3rd disaster relief fund, at about 500,000 won per month. Accordingly, workers in 11 sectors including insurance planners, credit card and loan solicitors, private tutors, visiting teachers, delivery drivers, rental product inspectors, home appliance delivery drivers, door-to-door salespersons, container truck owners, construction machinery workers, and after-school instructors will receive an emergency employment stability fund of 500,000 won plus alpha per person per month until June.

In addition, the ruling party and government are considering additional support measures for temporary jobs such as restaurant assistants and childcare service workers. These workers are not covered by industrial accident insurance and were excluded from the government’s employment insurance roadmap at the end of last year.