South Korea’s government expands direct interventions to restructure key expenditures, targeting employment insurance premiums, agriculture policy funds, national public facilities, and post office operations. Officials announced these measures at the Policy Expenditure Task Force meeting on December 13.
Adjusting Employment Insurance Premiums
Authorities focus on easing high premiums for self-employed individuals and job-seeking enterprises. Prime Minister Han Duck-soo stated last November, “Rising employment insurance premiums result from COVID-19 risks, population aging, and similar factors, making direct government intervention essential.”
The government also broadens wage-based premium calculations for workers changing jobs. This approach distributes burdens more equitably across private firms by basing contributions on income levels during re-employment. While small businesses face incentives to participate, large firms view it as non-mandatory. Single-person operations receive exemptions from additional services like housing support.
Reforming Agriculture Policy Funds
Non-regular workers now fall under expanded premium requirements for agriculture policy funds, including employment management funds, employment scale entry fees, and contract labor fees. Officials maintain total premiums at appropriate levels and manage new rates on a long-term basis. Exemptions apply to ‘one-person factories,’ sparing them revenue reporting obligations.
Streamlining National Public Facilities
Non-essential costs for national public facilities already apply nationwide waivers. Local governments analyze further expansions. Private operations advance through proprietary small-scale models, resident feedback, and operational necessities. Facilities like national marine cultural centers and youth training sites see promotions for private management. Though private operators dwindle, recent upticks in numbers encourage more establishments.
Post Office Expenditure Controls
Post office operations reflect recent challenges, including European floods and digital transformations. The government advances private-sector involvement via partnerships and regional blocs to optimize corporate establishments.
Task Force Outlook
Acting Minister of Economy and Finance Im Ki-geun emphasized, “We responsibly address event-driven exits and management-intent reductions without policy gaps.” He added, “This avoids repeating past failures, building a compact yet resilient framework in critical areas.”
