This year, the number of young people who have completely given up on job hunting has surpassed 500,000 for the first time, prompting the Lee Jae-myung government to invest 1.6 trillion won to enhance the employment safety net. In particular, the government plans to increase the number of job seekers eligible for unemployment benefits by approximately 190,000 and to establish a specialized employment support program for the long-struggling construction industry.
On the 19th, the government noted that the cabinet meeting deliberated and approved the supplementary budget plan for the second additional budget in 2025, which contains this information.
The budget allocated for the employment safety net in the supplementary budget is approximately 1.6 trillion won, focusing mainly on supporting job seekers, micro-businesses, and workers affected by unpaid wages.
First, the government will expand the eligibility for unemployment benefits from the existing 1,611,000 to 1,798,000, increasing it by 187,000 to stabilize the livelihoods of job seekers. To this end, 1.3 trillion won has been allocated.
The number of beneficiaries of the National Employment Support System will increase from 305,000 to 360,000. Additionally, a type of the National Employment Support System specialized for urgent industries such as construction has also been established. For the 10,000 unemployed in the construction sector, a policy has been set to provide an extra training allowance of 200,000 won, regardless of income, in addition to the current 284,000 won. For this, 165.2 billion won will be invested.
This appears to be a measure aimed at supporting young people leaving the job market recently. According to a survey conducted by the Statistics Korea, the number of young people (ages 15-29) who were 'inactive' reached 504,000 in February, surpassing 500,000 for the first time since related statistics began to be compiled in 2003. In March, April, and May, the number of 'inactive' young people recorded was 455,000, 415,000, and 396,000, respectively.
The government will also strengthen support for micro-businesses. For business sites with fewer than 10 employees, 80% of the social insurance premiums for workers earning less than 2.7 million won per month will be supported. For business sites with fewer than 50 employees, 70% of the costs for purchasing heatwave response equipment, such as portable air conditioners, will be supported. Each of these items has been allocated a budget of 25 billion won and 15 billion won, respectively.
Financial support measures to resolve wage arrears issues have also been prepared. Loans will be expanded for business owners willing to liquidate and affected workers. About 1,060 individuals will be eligible for the loans, with interest rates temporarily reduced for three months. Business owners can borrow up to 150 million won, with the interest rate reduced from 3.7% to 2.7%. Workers can also receive support for loans up to 10 million won at an annual interest rate of 1.0% (previously 1.5%).