300 Billion KRW Support for Employment Slowdown Areas... 81.9 Billion KRW Increase for Wage Arrears Response [2025 Supplementary Budget]

Approval of the First Supplementary Budget for 2025
Projects Aimed at Crisis Response and Livelihood Recovery
Additional 25.4 Billion Won for Youth Job Creation

As the government finalized an additional supplementary budget worth 12.2 trillion won, the budget for projects under the Ministry of Employment and Labor increased by 211.3 billion won. An additional 30 billion won will be invested in the job creation projects that provide tailored support to regions experiencing employment slowdowns due to changes in the business environment and disaster responses such as wildfires, and the advance payment budget will be increased by 81.9 billion won to reduce concerns about wage arrears.

According to the Ministry of Employment and Labor on the 18th, the first supplementary budget for 2025 was approved at the Cabinet meeting held at the Government Seoul Office Building, including nine projects under the ministry’s jurisdiction. The total increased budget for the Ministry of Employment and Labor this year due to the supplementary budget is 211.3 billion won, with 59.7 billion won increased in budget expenditures and 151.6 billion won in fund expenditures.

The increased budget will be used for responding to crises such as changes in the business environment and wildfires, including ▲support for region-specific job creation tailored to local industries ▲employment retention subsidies ▲youth job creation support ▲skilled workforce training and equipment expansion (Polytechnic) ▲middle-aged internship programs and livelihood support. Livelihood recovery projects such as ▲advance payment disbursements ▲living stabilization fund loans ▲industrial accident workers’ living stabilization fund (loans) ▲credit guarantee subrogation repayment are also included.

The region-specific job creation support project added 30 billion won to the original budget of 107.9 billion won. Its purpose is to quickly support preventing employment slowdowns caused by wildfires and deteriorating business environments from spreading to the regional economy. The Ministry of Employment and Labor plans to provide tailored package support for job creation and retention in regions affected by employment slowdowns in industries such as petrochemicals, steel, automobiles, and construction. It will also support businesses and workers affected by disasters.

An official from the Ministry of Employment and Labor said, "After monitoring the regional situations, we estimated that about 6 to 8 regions would be eligible for the project," but added, "Since the project is actually carried out based on applications from regions, the number of target regions may change depending on future circumstances." The official also predicted that the budget allocation per region would be "around 5 to 7 billion won."

An additional 25.4 billion won will be invested in the youth job creation support project. Incentives for companies hiring youth facing employment difficulties will be expanded, and the retention incentives for youth employed in vacant jobs, previously paid at 18 and 24 months, will now also be distributed at 6 and 12 months. The budget for customized Polytechnic training supporting middle-aged reemployment, which is in high demand, will increase by 4.3 billion won.

Due to worsening domestic and international economic conditions, the advance payment budget, where the state pays part of the unpaid wages on behalf of employers due to the increased risk of wage arrears, will be increased by 81.9 billion won. In the process of expanding low-interest living stabilization fund loans for low-income workers, an additional 14.9 billion won will be invested. The budget for subrogation repayment support, where the government guarantees credit to help vulnerable workers receive loans smoothly, will also increase by 33 billion won.