The employment insurance benefits are largely divided into unemployment benefits, subsidy for employment security, and support for vocational skill development. The subsidy for employment security has been specifically designed to support employers; hence it is important for them to be familiar with the details and prepare for its subsidy application in advance. Here, I would like to introduce the different types of subsidies, requirements, and support involved in the subsidy for employment security.

In the event of a shortage of jobs or unstable employment due to business fluctuations at home or abroad, changes in the industrial structure or a decline in employment opportunities, the Minister of Labor shall work to prevent job losses, accelerate reemployment, expand employment opportunities, and take other actions to stabilize employment.

Should an employer adjust its employment situation through suspension of business, reduction of working hours, training, suspension of operations, or rearrangement of personnel, the Ministry of Labor makes a subsidy available to those who keep their employees.

Conditions for a company to receive the subsidy for a paid suspension of business or a paid leave of absence are as follows: 1) sales output in the previous month was 15% below the same month of the previous year); 2) production in the previous month was 15% below the same month of the previous year (here, the subsidy will be equivalent to the most recent three months’ average wage).
Conditions for a company to receive the subsidy for an unpaid suspension of business or an unpaid leave of absence are as follows:
• sales output in the previous month was 30% below the same month of the previous year (here, the subsidy will be equivalent to the most recent three months’ average wage);
• production in the previous month was 30% below the same month of the previous year (here, the subsidy will be equivalent to the most recent three months’ average wage).
1. Subsidy for retention of employment (paid to employer): paid suspension of business / paid leave of absence

(1) Requirement: Workers are forced to work 20% fewer working days per month, or take a leave of absence for one month or more.

(2) Subsidy: 2/3 of suspension allowance (1/2 for large companies), a subsidy up to KRW 60,000 per day for a maximum 6 months.

2. Subsidy for retention of employment (paid to employer): Unpaid suspension of business / unpaid leave of absence

(1) Requirement:

⋅Period: At least 30 days unpaid suspension of business; at least 90 days for unpaid leave of absence
⋅Beneficiaries: Directly affected workers at the workplace
- 19 total employees or fewer: 50% or more of total workforce
(Only for unpaid suspension of business);
- 99 total employees or fewer: 10 employees or more;
- 100 total employees or more, but fewer than 999: 10% of total workforce;
- 1000 total employees or more: 100 employees or more
⋅In the event of unpaid suspension of business, unpaid suspension or wages being paid less than 50% is only applicable.

(2) Subsidy will be up to 50% of the average wage of workers, and be subsidized up to 180 days.