Government to Inject Additional 280 Billion Won Budget for Wage Arrears Support

Expansion of Living Stabilization Fund Loan Resources

Choi Sang-mok, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance.

The government will expand funding worth 280 billion KRW to support companies with wage arrears and their employees.

On the 10th, Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok and Vice Minister of Employment and Labor Lee Seong-hee visited the Cheonan Employment and Labor Office of the Ministry of Employment and Labor to announce changes to the fund operation plan reflecting this.

First, the government will additionally secure approximately 280 billion KRW this month by revising the operation plans of the Wage Claim Guarantee Fund and the Workers' Welfare Promotion Fund. The expanded funds will be used for advance payments of unpaid wages, loan support for companies and workers with wage arrears, and livelihood loans for low-income workers.

This funding expansion was made as the amount of wage arrears this year increased significantly more than expected. According to the Ministry of Employment and Labor, the cumulative wage arrears as of April amounted to 751.8 billion KRW, a 1.4-fold increase compared to 535.9 billion KRW last year.

Additional early funding will also be secured for the 'Wage Arrears Settlement Employer Loan Program,' which supports employers willing to pay wages, and the 'Wage Arrears Worker Livelihood Loan Program,' which provides low-interest loans to workers facing livelihood difficulties due to wage arrears.

Funds will also be additionally secured for the ‘Livelihood Stabilization Loan’ program, which supports urgent living expenses such as medical costs, wedding expenses, funeral costs, and childcare expenses for low-income workers.

Deputy Prime Minister Choi emphasized the need for prompt legislative measures to fundamentally resolve the wage arrears issue. He also stated that if workers suffering from wage arrears or low wages wish to re-enter employment or change jobs, support policies such as vocational training and employment assistance will be closely linked and provided. He pledged to continuously listen to voices from the field and reflect them in policies.