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The Employment Insurance is designed for prevention of unemployment and

promotion of employment.

Employment Insurance is an important pillar or social security system, incorporated

with not only its traditional function of providing the unemployed with cash benefits to

maintain the unemployed's standard of living and help their re-entry into society, but

also functioning to prevent unemployment, promoting job security.

Subscription & Contribution

All employers hiring one or more workers are subject to register their entry to this

scheme with Korea labor Welfare Corporation(Welco)'s branch offices and pay

employers' and employees' contributiongs. Benefits under Employment Insurance

include unemployment benefits and vocational ability development programs, which

are carried out by the Government.

Benefits for Workers

Unemployment Benefits

- Stabilize job's seeker's standards of living and help their re-entry into society

Vocational Ability Development Program

- Promote worker's vocational ability development and enhancement

Employment Security Program

- Encourages employers to maintain employment security and prevent unemployment

Benefits for Employees

An amount equal to 50% of the average daily wage is awarded to a person who

has involuntarilly left for 90~240 days. Special and Individual Extended Benefits will

be paid for another 60 days in special case. In addition, Employment Promotion

Allowance, Subsidy for taking education courses, Loans for tuition fees and Subsidy

for vocational training of the unemployed, etc are provided.

Benefits for Employers

Employment stabilization subsidy is granted to an employer who maintains a certain

number of employees instead of employment reduction in certain case. An employer

hiring senior citizens, unemployed female household heads and long-term unemployed

are favored with subsidies and loans for the expenses for training, establishing

vocational training facilities & equipment.

Subsidies to workers

Providing job seeker’ s benefits up to 240 days

Job seeker's benefits are paid during periods of involuntary unemployment, such

as a company's disclosure, bankruptcy and/or layoff. However, the claimant must

actively seek work or make a reasonable effort to obtain work. If this criteria is

satisfied, they can receive benefits for 90~240 days depending on the coverage

period and their age on leaving their company. It amounts to 50% of the average

daily wage (up to ￦35,000 per day)

Special and Individual extended benefits are paid to the prolonged unemployed

The prolonged unemployed who haven’ t found a job after a specified period can

receive payment. In addition, Employment promotion allowances, Subsidy for taking

classes, Loans for tuition of workers, and Subsidy for vocational training of the

unemployed are provided.

Subsidies to Employers

Subsidy for employment maintenance

A portion of wages and training fees are paid for 180 days to those employers

who maintain employment in spite of layoffs due to managerial reasons. (Subsidy for

allocating labor resources is paid for 1 year)

Subsidy for hiring senior citizens

Subsidies are paid to those who hire senior citizens aged: 55~60 years and who

have been unemployed for over 3months registering for work. This subsidy is also

paid for 6 months to employers who hire retired senior citizens.

Subsidy for hiring women

Subsidies are paid to those who hire female heads of families and hire retired

women after pregnancy, delivery, nursing and maintain employment of women after

maternity leave.

Subsidy for hiring the long term unemployed

Subsidies are paid for 6 months to those who hire the prolonged unemployed,

who have been unemployed for over 6 months based on the date they register for

work at the public employment office.

Subsidy for vocational ability development training

A portion of designated training fees are paid to those who execute vocational

ability development training in compliance with Worker's Vocational Training Promotion

Act.

Subsidy for paid-vacation training

A portion of wages and training fees are paid when an employee, who has been

unemployed over 1 year, is granted paid-vacation training over 30days.

Subsidy and loans for the cost of establishing vocational training facilities &

equipment    Subsidies are paid when a company claims the cost of establishing

vocational training facilities to implement Vocational ability development training.