Seoul City to Provide Up to 1.5 Million Won Employment Retention Support Fund to 10,000 Unpaid Leave Workers

Up to 1.5 Million KRW for Unpaid Leave up to 3 Months for Workers of Small Businesses with Fewer than 50 Employees
From November 14 Last Year to March 31 This Year, Targeting 10,000 Workers with More Than 5 Days of Unpaid Leave Due to Gathering Bans and Business Restrictions

[Asia Economy Reporter Lim Cheol-young] On the 23rd, the Seoul Metropolitan Government announced that it will provide unpaid leave employment retention support funds worth 1.5 million KRW, paying 500,000 KRW per month for up to 3 months to 10,000 workers of small business owners and small enterprises with fewer than 50 employees in Seoul who have taken unpaid leave for 5 days or more per month.

The "Seoul-type Unpaid Leave Employment Retention Support Fund" is a system designed to support unpaid leave for workers of small business owners and small enterprises with fewer than 50 employees, who are in a blind spot of the government’s employment retention support measures and for whom paid leave is practically difficult. Up to 49 workers per company with fewer than 50 employees in Seoul can apply, and the application period is from March 1 to 31.

Seoul aims to support at least 10,000 unpaid leave workers with a budget of 15 billion KRW (100% city funds). The selection criteria prioritize workers of businesses severely affected by COVID-19, such as those under gathering bans or business restrictions. If the budget is exceeded, workers who have been enrolled in employment insurance for a long period at the current company will be selected in order.

The unpaid leave employment retention support fund has been increased to a maximum of 1.5 million KRW considering the prolonged economic downturn and strengthened social distancing measures.

Eligible applicants must submit the application form and supporting documents to the district office with jurisdiction over the company’s address. Applications can be submitted by the employer, worker, or a third party (with a power of attorney attached). Besides in-person applications, various methods such as email, mail, and fax are available.

If direct application is difficult, a reception agency service is also provided where staff visit companies to receive applications. To this end, two administrative support personnel are assigned per district to assist.

For detailed inquiries about the employment retention support fund, contact the Seoul Metropolitan Government’s Job Policy Division or the job-related department of the relevant district office.

Kim Ui-seung, Director of Seoul’s Economic Policy Office, said, “The Seoul employment retention support fund is a specially prepared system to support workers of small business owners and small enterprises with fewer than 50 employees who are forced to take unpaid leave, a group that has been in a blind spot of government policies. We plan to thoroughly implement this support project to help stabilize employment and sustain livelihoods for workers struggling due to COVID-19, and to help workplaces maintain employment of skilled personnel and preserve a minimum employment base until the COVID-19 situation settles.”