The government's proposed supplementary budget of 12 trillion won includes support programs for job creation and vulnerable workers.
The Ministry of Employment and Labor noted that the budget increases under the government's supplementary budget approved at the Cabinet meeting on the 18th entail nine projects, amounting to 211.3 billion won. This will be finalized after further review and approval by the National Assembly.
First, 30 billion won will be allocated to the "employment slowdown response" support program. This will provide "customized" package job support for regions primarily engaged in sectors facing employment slowdowns such as petrochemicals, steel, automobiles, and construction, as well as areas affected by disasters like wildfires. The government plans to select the target local governments after certain reviews.
For example, in region A selected for the support program, assistance will be provided for living expenses, transportation costs, and relocation expenses for displaced workers due to business closures and industrial transitions. Additionally, wage subsidies will be provided to workplaces that have implemented employment retention measures, despite being in employment slowdown sectors, along with the incumbent workers.
Support for job creation for young and middle-aged workers will also be strengthened. The government currently offers incentives to corporations that hire youth experiencing difficulties in employment, and plans to expand this target. Furthermore, incentives for hiring youth for vacant positions will be paid earlier. In the case of the retention incentive for vacant positions, previously 2.4 million won was provided at the 18th and 24th months, but now it will be given at 1.2 million won for the 6th, 12th, 18th, and 24th months.
The government will expand the "Polytechnic tailored training" program to support the swift reemployment of middle-aged workers, offering weekend and evening courses for those preparing for job transitions while still employed. It will also increase the number of beneficiaries for programs providing practical experience for middle-aged workers who have left office jobs to transition into promising employment sectors like electrical, firefighting and facilities management, industrial safety, social work, and career counseling.
Support for the stabilization of livelihood for vulnerable workers, including those with unpaid wages and low-income workers, will also be strengthened. The government will increase the amount for "large payments" made by the state on behalf of employers who have not paid wages on time, and will expand the "living stabilization fund" offering loans at an annual low interest rate of 1.5% to low-income workers. The interest rate for the workers' compensation living stabilization fund will be reduced from 1.25% to 1%, while the lending limit will increase from 20 million won to 30 million won. Budget for credit guarantee subrogation support will also be expanded.