The Korea Workers' Compensation and Welfare Service (KCOMWEL) is running an enrollment promotion period to reduce the infringement of workers' rights caused by the avoidance of employment and industrial accident insurance enrollment. This measure is being implemented as a way to address the insurance blind spots.
The agency has continued to improve the system by expanding coverage to labor providers, abolishing the exclusivity requirement, and introducing the "deemed reporting system," which considers reporting for employment and industrial accident insurance as completed upon business registration. However, some employers, low-income workers, and contract workers still avoid insurance enrollment by reporting income as "business income," so insurance blind spots remain.
Under current law, anyone who provides labor for the purpose of earning wages, regardless of occupation, is subject to employment and industrial accident insurance. Even if a 3.3% business income tax has been reported to the National Tax Service, if the work was essentially performed for the purpose of earning wages, enrollment in employment and industrial accident insurance is required.
During this enrollment promotion period, KCOMWEL will deploy dedicated personnel to provide proper guidance and conduct campaigns. Afterward, the agency plans to inspect workplaces that have failed to enroll in employment and industrial accident insurance and have reported workers as business income, as well as workplaces with falsely reported contract workers, and impose insurance premiums. According to relevant laws, non-enrolled workplaces may be fined up to 3 million won.
In addition, to reduce the insurance premium burden on small businesses, KCOMWEL operates the "Durunuri Social Insurance Support Program," which provides support for 80% of employment insurance and national pension premiums for businesses with fewer than 10 employees. Alongside this, the agency has established a social insurance premium support system utilizing local government budgets by signing business agreements with local governments, starting with Gangwon Special Self-Governing Province. On May 9, KCOMWEL signed an agreement with Jeonbuk Special Self-Governing Province, thereby completing a collaborative system with all metropolitan local governments nationwide.
Park Jonggil, President of KCOMWEL, stated, "Enrollment in employment and industrial accident insurance is not a choice but a necessity," and added, "We will strengthen cooperation with local governments so that all people working in small businesses can be protected within the social safety net."
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