South Korea Doubles Job-Retention Subsidy Recipients to 48,000 as Per-Person Aid Falls 27%
Updated
Updated · asiae.co.kr · Jun 22
South Korea Doubles Job-Retention Subsidy Recipients to 48,000 as Per-Person Aid Falls 27%
1 articles · Updated · asiae.co.kr · Jun 22
Summary
48,000 workers are budgeted to receive South Korea’s employment retention subsidy this year, up 100.7% from 24,000, while the total budget rises only 26.6% to KRW 8.89 billion.
Average support is therefore shrinking: the budgeted duration drops to 2.1 months from 2.5, and the average subsidy per person falls to KRW 854,000 from KRW 1.175 million.
The Labor Ministry said the lower averages reflect recent execution data, as companies increasingly use the program for short-term shutdowns or unpaid leave rather than prolonged crises.
U.S. tariffs, Middle East-driven oil price gains and higher raw-material costs are hitting more sectors at once, prompting broader eligibility this year for industries including air transport and rubber-plastics manufacturing.
Economists warn the wider reach could dilute the subsidy’s layoff-prevention effect and force budget reallocations from other employment insurance programs if actual demand exceeds projections.