Employment Retention Subsidy Increased by 11.1 Billion KRW: "Support for Tariff Hikes and Large-Scale Wildfire Damages"

Purpose of Supporting Employment Retention for Workers

The Ministry of Employment and Labor announced on May 21 that it will increase the budget for the Employment Retention Subsidy by 1.11 billion KRW to support companies affected by large-scale wildfires and to prepare for global uncertainties caused by tariff hikes. This additional budget was secured through this year’s supplementary budget. The total budget has now increased to 8.14 billion KRW.

Provided by Ministry of Employment and Labor

The Employment Retention Subsidy is a system that provides partial compensation for leave or furlough allowances to employers who maintain employment through temporary shutdowns or furloughs, instead of implementing layoffs, during business difficulties. Employers can receive between one-half and two-thirds of the allowances paid to employees, up to 66,000 KRW per employee per day, for a maximum of 180 days per year.

Employers wishing to receive the Employment Retention Subsidy must establish an employment retention plan and report it to the employment center under the jurisdiction of the Ministry of Employment and Labor. After implementing leave or furlough measures and paying allowances to employees, employers can apply for the subsidy on a monthly basis.

Lee Junghan, Director General of Employment Policy at the Ministry of Employment and Labor, stated, "We will support the efforts of labor and management to maintain employment, even under difficult circumstances such as changes in the economic environment and large-scale disasters," adding, "The government will actively support the Employment Retention Subsidy so that it can be as helpful as possible."

The Employment Retention Subsidy contributed to preventing unemployment by supporting companies facing business difficulties during the COVID-19 pandemic. In March, the Ministry of Employment and Labor also relaxed the application requirements and expanded the scope and level of support for companies affected by large-scale wildfires in areas designated as special disaster zones.

This content was produced with the assistance of AI translation services.