2020 Employment and Labor Policy in Korea

Employment and Labor
Policy in
KOREA
2020
Contents
I. Overview of the Ministry of Employment and Labor 4
1. Vision & Mission 5
2. History 6
3. Organization 10
4. Responsibilities 15
II. Major Employment and Labor Policies 18

1. Pursuing job policies to overcome COVID-19 crisis and to become a global leader 19
2. Protecting Working Conditions and Improving Employment Practices 51
3. Realizing a Society Where Labor Is Respected 59
4. Creating a Safe and Accident-Free Workplace 63
5. Promoting International Labor Cooperation 66
III. Appendix 72
1. Labor Laws 73
2. Major Statistics 76
03
01
I. Overview of the Ministry of Employment and Labor

Vision & Mission
Ⅰ
MOEL’s promise to the people of Korea
Vision: A country where the people fulfil themselves in desired positions
II. Major Employment and Labor Policies

Overview of the Ministry of Mission 01
To protect the rights and interests of workers through fostering
Employment and Labor

a abor-respecting society and a discrimination-free workplace
Mission 02
To establish foundation for creating decent jobs and enhancing
employment safety net
Mission 03
To strengthen employment assistance tailored to age and
gender
Mission 04
To formulate the skills development system preparing for the
III. Appendix
future labor market
Mission 05
To create a safe and healthy workplace
05
Employment and Labor Policy in Korea 2020
02

History
The Labor
Administration was
launched (two Bureaus
(Labor Relations
Policy Bureau and The Labor
Employment Security Administration
Bureau) and established its
six Divisions). regional offices.
1948 1953 ~ 1954 1955 1963 1974
The Labor Bureau was The National The Ministry of Health

launched under the and Regional and the Ministry of
Ministry of Social Affairs Labor Relations Social Affairs were
(Four Divisions). Commissions were integrated, and the
created. Labor Bureau became
under the Ministry The Labor Administration was upgraded to 1981
of Health and Social the Ministry of Labor (one Office (Planning
Affairs and Management Office) and six Bureaus,
including Labor Relations Policy Bureau
and Labor Standards Bureau).
1989 1987
The Occupational Safety The six regional offices were

Bureau was created. reorganized into six Regional
Labor Administrations.
III. Appendix
06 07

The Employment Security Bureau
The Labor Relations and the Vocational Training
Policy Bureau and the Bureau were merged to create
Labor Management the Employment Policy Office; The
Guidance Office were Labor Relations Policy Office was
merged to form the split into the Labor Relations Policy
Labor Relations Policy Bureau and the Labor Management
Office. Cooperation Bureau.
1991 1995
The International Cooperation Bureau was created; 1996

The Working Women's Policy Division was reorganized into
the Working Women's Bureau;
The business of collecting IACI premiums and compensating
workers for industrial accidents was entrusted to the Korea
Workers' Compensation and Welfare Service;
The Employment Insurance System came into force.
2018 2017 2013 2010
With the establishment The structure was The Manpower Policy The Ministry of Labor was
of the Employment reorganized into 3 Bureau and the renamed the Ministry of
Support Policy Offices, 13 Bureaus, 41 Industrial Accident Employment and Labor
Bureau and the Labor Divisions and 5 Teams. Prevention and (3 Offices, 13 Bureaus and
Inspection Policy The Labor Market Compensation Bureau 40 Divisions). The Regional
Bureau, the Ministry Analysis Division was were created. Labor Administrations
III. Appendix
became comprised of created. were renamed the
3 Offices, 13 Bureaus Regional Employment and
and 45 Divisions. Labor Offices.
08 09
03

Affiliated Institutions (64)
Organization
• Regional Employment and Labor Offices (48) (100 job centers included)
• 6Regional Offices
• 40 District Offices
• 2 Branch Office
• Commissions (16)
Non-fixed-term Contract COVID-19 Response • Labor Relations Commissions (National Labor Relations Commission
Workers Recruitment and Emergency
Planning Bureau Employment and 12 Regional Labor Relations Commissions)
Stabilization
Support Bureau
Planning Coordination • Minimum Wage Council
Division

Employment • Employment Insurance Deliberation Committee
General Support Measures
Division
Division • Industrial Accident Compensation Insurance Redeliberation Committee
• National Labor Consultation Center
III. Appendix
10 11

Relevant Institutions Korea Employment Information Service www.keis.or.kr
• Provision of mid- and long-term prospect for labor supply and demand,
Korea Workers’ Compensation & Welfare Service www.kcomwel.or.kr
and analysis of employment surveys
• Provision of compensation for industrial accidents • Collection and provision of employment information and analysis of employment
trends
• Promotion of rehabilitation and social reintegration of workers injured in industrial
accidents • Operation of the national employment network
• Operation of employment insurance and industrial accident compensation insurance

• Implementation of projects for industrial accident prevention and workers’ welfare Korea Social Enterprise Promotion Agency www.socialenterprise.or.kr
improvement
• Creation of a friendly environment for social enterprises by certifying social
enterprises and nurturing social entrepreneurs

• Support for sustainable business activities by providing business consulting services
Human Resources Development Service of Korea www.hrdkorea.or.kr and support for entry into new markets
• Provision of monitoring results, analyses and surveys on social enterprises
• Support for workers’ life-long learning
• Promotion of national qualification tests and expert skills
• Introduction of foreign workers to Korea and support for overseas employment Korea Polytechnics www.kosha.or.kr
• Cultivation of a workforce for key national industries and new growth sectors
• Development of vocational competencies throughout the entire career of workers,
Korea Occupational Safety and Health Agency www.kosha.or.kr including those at SMEs
• Support for the employment of the underprivileged and provision of technology
• Guidance and education on occupational safety and welfare guidance for SMEs
•R
esearch and development, and promotion of measures to prevent industrial accidents
Korea University of Technology & Education www.koreatech.ac.kr
III. Appendix
Korea Employment Agency for the Disabled www.hrdkorea.or.kr • Cultivation of vocational competency development teachers and HRD experts
• Provision of education and training for the life-long competency development of
• Support for the employment of the disabled and their self-reliance vocational training teachers and workers
•C
reation and maintenance of jobs for the disabled and building an environment • Provision of education on labor relations in the public sector and on-the-job education
friendly to their employment for officials in charge of employment and labor
12 13
04

Job World www.koreajobworld.or.kr
Responsibilities
• Provision of materials and information related to jobs
• Establishment and operation of job experience programs
• Provision of career counselling and psychological testing
According to Article 40 (Ministry of Employment and Labor) of the National

Construction Workers Mutual Aid Association www.cwma.or.kr Government Organization Act, the Minister of Employment and Labor is in charge
of overall employment policies, employment insurance, vocational competency
• Collection and payment of mutual benefit funds for retirement
development training, labor standards, workers’ welfare, mediation in labor

• Support for stable employment of construction workers, and development and relations, occupational safety and health, industrial accident compensation
improvement of vocational competencies and employment support programs
insurance, and other matters of employment and labor.
Korea Testing Institute of Technical Qualification www.ktitq.or.kr

Being in charge of overall employment labor policies and their adjustment: the Ministry of
• Administration of national technical qualification tests reflecting industry demands
Employment and Labor (MOEL) is responsible for overall employment policies, meaning
• Support for employment through acquisition of qualifications
that MOEL is in charge of all Ministries ‘employment policies, and establishes and operates
• Assistance for the State and companies to ensure efficient utilization of
measures for cooperation among central and regional governments and the private sector.
human resources
Korea Labor Foundation www.nosa.or.kr
III. Appendix
• Education on mutual prosperity of labor and management, and international labor
exchanges and cooperation
• Support for (soon-to-be) retirees’ reemployment and business startup
• Creation of jobs through cooperation between labor and management and of
companies where workers feel happy to work
14 15

Responsibilities of Offices and Bureaus
Name Responsibilities Name Responsibilities
Employment Policy Office • Establishment of policies for occupational safety and welfare and industrial
Industrial Accident accident prevention
• Establishment and handling of employment policies and strategies Prevention and • Establishment and improvement of industrial accident insurance policies
• Establishment and management of measures to address imbalances in Compensation • Implementation of industrial accident inspections and establishment of
Labor Market
labor supply and demand at the industrial and regional level Bureau policies for industrial accident prevention by sector and improvement
Policy Bureau
• Establishment and implementation of plans for statistical surveys on the measures for working environments
labor market and for labor market analyses
Planning and Coordination Office
• Establishment of systems and policies related to employment support
services
Employment • Establishment and adjustment of major work plans, and allocation and
• Establishment and adjustment of policies related to employment insurance
Services Policy execution of budgets
and management of the employment insurance fund

Policy Bureau Planning • Management of officials and overall coordination and support for legislation
• Support for employment and the operation of the unemployment benefits
system Bureau • Establishment of informatization strategies, and development and
operation of the labor administration information system
Youth and
• Management of overall measures to increase youth employment
Women’s
• Establishment of measures for female employment and maternity
Employment • Overall management of international organizations in employment and
protection International
Policy Bureau labor fields, and implementation of international cooperation projects.
Cooperation
• Introduction and management of foreign workers in Korea and protection
• Establishment of vocational competency development policies Bureau
Vocational Skills of their rights
• Establishment of policies related to the National Technical Qualifications
Policy Bureau
System and promotion of skills
Labor Policy Office
• Establishment of labor standards policies,including work hours and

working on holidays, and retirement pension systems
Labor
• Establishment of policies for worker protection, including the minimum
Standards
wage and the wage claim guarantee fund
Policy Bureau
• Establishment of affirmativeaction and employment stabilization policies
for fixed-term workers
• Management, adjustment and analysis of labor management policies,

Labor-
III. Appendix
enhancement of labor management cooperation, and establishment of
Management
conflict resolution policies
Cooperation
• Labor relations laws and institutions, collective bargaining, and collective
Policy Bureau
agreements
Public • Establishment and operation of policies related to labor relations in the

Sector Labor public sector
Relations • Provision of support for and adjustment of labor management conflict in
Policy Bureau the public sector
16 17
01

Pursuing job policies to overcome COVID-19
crisis and to become a global leader
1) Overview
Ⅱ As the Korean economy enters the mature stages of expansion, its growth slowed down,

and social polarization worsened due to insufficient social safety net. In response, the Moon
Jae-in government sought to bring a paradigm shift in the economy to build an “innovative and
Major Employment inclusive nation” in which everyone prospers together.
and Labor Policies

• In particular, the Presidential Committee on Job Creation announced the five-year
Job Policy Roadmap in October 2017 in order to firmly establish the virtuous circle of
employment, distribution and growth. Ever since, the Korean government has been striving
to carry out the Ten Major tasks under the Roadmap, which are: Building a job-oriented
governance structure; Strengthening job safety nets and fostering human resources for
innovation; Creating 810,000 new jobs in the public sector; Promoting innovative startups;
Enhancing industrial competitiveness and promoting new industries and service sector;
Invigorating the social economy; Creating regional jobs; Protecting non-regular workers and
creating a non-discriminatory work environment; Improving working conditions by raising
the minimum wage and introducing the 52-hour workweek; Providing tailored job support
III. Appendix
for youths, women and the new middle-aged.
Today, the global economy is facing the worst recession and employment shock since
the Great Depression due to the intensive containment measures implemented by countries in
response to the COVID-19 pandemic. Korea saw its employment indicators worsen since March
2020, with the number of the employed sharply decreasing and unemployment rising.
19

Major labor market indicators (Population aged 15 and over) • In addition, the government strived to protect businesses and jobs from financial market
instability by providing financial support to micro-business owners and SMEs, who are
2020.1 2020.2 2020.3 2020.4 2020.5 2020.6 2020.7
hit the hardest by COVID-19, and by expanding the supply of loans and guarantees for
Changes in the micro-businesses and SMEs, and by providing support to stabilize the stock and bond
number of the markets. In particular, the government provided liquidity and capital expansion support
employed 56.8 49.2 △19.5 △47.6 △39.2 △35.2 △27.7
(y-o-y, unit: 10,000 to key industries that have a significant impact on the national economy, such as jobs and
persons)
exports, under the condition of maintaining employment.
Number of the
• In the meantime, in consideration of the widespread damage people have suffered due
employed 2,750.3 2,752.2 2,684.2 2,650.4 2,665.7 2,673.6 2,680.8
(Seasonal adjustment, to COVID-19, the government handed out emergency relief funds to all citizens, with a
unit: 10,000 persons)
family of four receiving 1 million won, to ensure livelihood and income security and to

Employment promote consumption. The government deferred payment period of national pension,
(Seasonal adjustment, 61.6 61.6 60.0 59.3 59.6 59.7 59.8
%) employment insurance, and industrial accident compensation insurance contributions, and
granted exemptions for health insurance and industrial accident compensation insurance
Unemployment
(Seasonal adjustment, 4.0 3.3 3.8 3.8 4.5 4.3 4.2 contributions, thereby easing the financial burden on businesses and households. In
%)
addition, the deadline for electricity bills payment was extended for small business owners
and vulnerable groups.
• In response, Korea has put all its efforts to protect jobs and the vulnerable by drawing up
a national comprehensive policy package worth 277 trillion won. First, early on in COVID
crisis, the Korean government significantly expanded its Employment Retention Subsidies The employment indicators have improved on the back of active policy responses from
program for employers and employees to protect jobs. Particularly, the government the government. The declining trend in the number of the employed has weakened for three
strengthened support for sectors that have been hit the hardest such as tourism, travel, consecutive months after April compared to the same period of the previous year, and the
and airline by designating them as Special Employment Support Sectors. Second, the seasonally adjusted number of the newly employed increased for three consecutive months,
government provided income support for the vulnerable and those not covered by the showing an upward trend since May compared to the same period of the previous year. The
III. Appendix
Employment Insurance to stabilize their livelihoods via a variety of income support declining trend in the number of the employed in the manufacturing industry that continued
programs, including Emergency Employment Stability Subsidy program, in recognition for four consecutive months has also weakened from July, and the declining trend in the
of the fact that the groups most affected by COVID-19 crisis were those not covered by number of employed temporary and daily workers also weakened from May. Businesses took
the Employment Insurance, such as the dependent self-employed and micro-business advantage of the Employee Retention Subsidy program and opted for measures to retain their
owners. Third, the government worked to create jobs in both the public and private sectors employees such as temporary business suspension or having employees take leave instead of
using government budget so that the vulnerable groups such as people from low-income laying off employees, which seems to have played a part in many regular employees keeping
families and young people can stay in the labor market. their jobs.
20 21

• Korea’s infectious disease control and crisis response was highly evaluated by the OECD Against this backdrop, Korea is pursuing the Korean New Deal as a national strategy to
report (published in August 11, 2020). The OECD analyzed that with a swift and effective support the country’s recovery from the pandemic crisis and lead the global economy in the
policy response, the economic contraction in Korea was less than in any other OECD world after COVID-19. Korea will strongly push ahead with the Digital New Deal and Green
country, and the fall in employment and economic growth in Korea were markedly less New Deal, the two pillars of the K-New Deal, support it by strengthening the social safety
than in other OECD countries. net, and induce and promote subsequent large-scale private investment by making financial
investments and improving the institutional framework. With an investment of 160 trillion won
* Projected employment growth rate of Korea in 2020 (OECD, compared to 2019, %) :
to be injected until 2025, the government plans to create 1,901,000 jobs.
-0.6 ~ -0.7% (-163,000 ~ -190,000 persons)
↳ Projected employment growth rate of OECD countries in 2020 (compared to 2019, %) : -4.1 ~ -5.0% • With the Digital New Deal, Korea aims to further strengthen its digital capacity based on
its competitive edge in information and communication technology (ICT), as demonstrated
by its world-class infrastructure and services for e-Government, thereby promoting

Meanwhile, the unprecedented pandemic is expected to lead to structural changes in the digital innovation and dynamics throughout the economy. The government plans to build
economy and society as it changes behaviors and perceptions of all economic players. large-scale ICT infrastructure including a “Data Dam,” which serves as the foundation
for a digital economy. This will promote a data-driven economy including the collection,
First, the transition to a digital economy is being accelerated as the demand for online and
standardization, processing and combining of data, and ultimately secure a competitive
contactless services rapidly increases in an effort to contextualize disease prevention and
advantage for the country by creating new industries and accelerating the digital transition
control within everyday lives.
of key industries.
Second, the transition to a green economy is gaining traction due to the growing demand
• With the Green New Deal, Korea aims to achieve net-zero emissions and accelerate the
for a low-carbon and green economy.
transition towards a low-carbon and green economy. To this end, the government plans
Third, the radical transformation of economic and social structure and the consequent to build “Green Energy Dam,” an eco-friendly energy infrastructure that promotes energy
reform of the labor market may act as contributing factors for deepening polarization. The saving, protects the environment, and encourages use of renewable energy. The mobility,
transition towards a digital and green economy will create jobs in new technology sectors energy, technology and other types of climate-friendly industries will be strengthened
and new industries, and diversify the forms of work such as platform labor and remote in all possible ways, giving the country an upper hand to become a leader in the global
working. At the same time, it could also lead to a mismatch between jobs and skills, as well market.
III. Appendix
as a lower demand for low-skilled labor, which could increase the burden and concerns
• As for building a “Stronger Safety Net,” Korea seeks to reinforce the resilience of economic
on jobs transfers and changing jobs, unemployment, polarization, etc. As such, there will
agents against the uncertainty of times that result from changing economic structures, by
be increasing demand for expanding and advancing vocational training, establishing legal
providing support to address unemployment and income gaps.
protection for new types of employment, and strengthening the safety net to address
unemployment and income gaps. First, the government will build a stronger and tighter employment and social safety net
to protect those who are particularly vulnerable in times of crisis, and to close blind spots
22 23

in the employment and social security system. To this end, the government will build a 2) Employment and labor policies in response to COVID-19
universal employment safety net by expanding the coverage of the employment insurance
and industrial accident compensation insurance. In addition, the government will adopt the
In response to the COVID-19 employment crisis, the Korean government drew up
National Employment Support Program that provides those from low-income households
unprecedented fourth supplementary budget, and established and actively implements
and the vulnerable group in employment with employment support programs, including
employment measures. The employment and labor policies are largely composed of three
vocational training and work experience, as well as Employment promotion allowances and
pillars of job retention support, income and reemployment support for the vulnerable groups,
Job search promotion subsidy in order to provide livelihood and employment stabilization
and direct job creation.
support for those not covered by employment insurance. The government will also
strengthen the national basic livelihood security system and push for the introduction of a
Korean version of sickness benefits.

Second, against the changing economic structure, the government will make more
inclusive, people-centered investments in human resources to build talent, provide
employment support for new types of jobs, and to reduce the digital gap. In this regard, the
government will train digital and green talent, restructure the job-training system to be
future-oriented, and enhance the accessibility to digital infrastructure for rural residents
and vulnerable groups.
① Job retention support
The Korean government significantly expanded the Employee Retention Subsidy
program to keep employees in employment. The Employee Retention Subsidy is provided
when employers faced with inevitable restructuring take measures to retain their employees
such as temporary business suspension (includes offering employees shorter working hours)
or having employees take leave, instead of laying them off. The government subsidy covers
part of the shutdown allowances (of at least 70% of the average wage) that the employer pays
to employees during the shutdown period.
III. Appendix
• Originally, the percentage of the shutdown allowance covered by the Employee Retention
Subsidy was 50~66% depending on the size of the business. Yet in order to actively
support the job retention efforts by employers, the level of support was raised to cover
up to 75% of the shutdown allowance during February~March, and was further raised to
cover up to 90% during April~September. The budget for the Employee Retention Subsidy
24 25

was increased to 2.2 trillion won via supplementary budgets, which is about 60 times the after the employer first pays shutdown allowances to their employees. As such, a new
original budget. As of the end of August, 78,000 businesses employing 650,000 employees program was introduced in which the government provides loans to employers so that
benefitted from the subsidy. they can pay their employees shutdown allowances, and then pay back with the Employee
Retention Subsidies;
Eight industries that have been hit particularly hard, including travel, aviation, hotel, Third, “Swift Support for Unpaid Leave” program. The Employee Retention Subsidies are
mainly provided to businesses that temporary suspends business or sends their employees
performance industries, due to social distancing measures and drastic decline in foreign
on paid leave, but it is also given to businesses that first sent their employees on paid leave
travelers were designated as “Special Employment Support Sectors.” These sectors were
then switched to putting employees on unpaid leave. However, many businesses chose to
to receive government support until mid-September, but as the COVID-19 crisis lingered,
send employees on unpaid leave as they could not afford paid leave as the circumstances
the period of support was prolonged until March 2021. The sectors designated to receive
related to employment rapidly deteriorated due to COVID-19. Taking such circumstances
the special employment support receives employee retention subsidies that covers up to

into account, the Swift Support for Unpaid Leave program aims to provide support by
90% of the shutdown allowance, with a maximum unit price of 70,000 won per day, which is
significantly easing the requirement on businesses first sending their employees on paid
higher than the subsidies of 66,000 provided to other sectors. In addition, social insurance
leave.
contributions for workplaces of Special Employment Support Sectors are deferred or
exempted, and they can also benefit from increased employment incentives. Those who
recently became unemployed after working in Special Employment Support Sectors are given
Meanwhile, the government newly introduced “Emergency Family Care Leave Subsidy”
preferential support when they participate in vocational training or employment support
program to address the workers’ rapidly growing needs to take care of their family members
programs.
due to social distancing measures and school closures, and to contribute to employment
retention. This program provides subsidies of 50,000 won per day per worker up to 10 days, to
workers who take family care leave due to reasons related to COVID-19, such as when daycare
The government took comments on the Employee Retention Subsidy program from
center or school of their child who is less than 8 years old or elementary school second grader
social partners and reflected them in newly establishing supplementary projects as follows:
or younger closes. Workers can use up to 10 days of short-term family care leave per year
First, “Employment Security Agreement Subsidy” program. This subsidy is given when the
pursuant to the Equal Employment Opportunity and Work-Family Balance Assistance Act, but
labor and management concludes an agreement to retain employment and actually do so
this new program was introduced under consideration that such workers may face financial
III. Appendix
for a certain period of time. It supports a certain percentage (50%) of the amount of wage
difficulties as the leave is unpaid. Aside from this program, workers can take advantage of the
reduction for up to six months. Unlike the Employee Retention Subsidy, the Employment
existing system to support work-family balance such as annual paid leave (15-25 days), family
Security Agreement Subsidy can be provided to businesses even if they do not take
care leave (up to 90 days), childcare leave (1 year, paid leave), reduced working hours for
measures such as temporary business suspension or having employees take leave;
period of childcare (1 year, paid), teleworking, etc.
Second, “Loan for Employee Retention Costs” program. Employers may face cash-flow
problems as the Employee Retention Subsidies are provided to cover shutdown allowances
26 27

employed and freelancers as well as 80,000 workers on unpaid leave benefitted from it during
April to May;
Second, “Emergency Employment Stability Subsidy” program, which was executed by the
central government, unlike the Special Support Program for Regional Employment. The
program provides a subsidy of 1.5 million won to the dependent self-employed, freelancers,
② Income and reemployment support for the vulnerable such as the unemployed micro-business owners and workers on unpaid leave who meet certain income requirements
For those who lost their jobs despite the government’s job retention support such as the and suffered income or sales losses during March to May due to COVID-19. Initially, this
Employee Retention Subsidies program, the government provided an active livelihood support program was aimed to support 1.14 million persons with a budget of 1.5 trillion won, but
by expanding the scale of unemployment benefits. In addition, the government supported their as the number of persons in need of support drastically increased, a total budget of 2.2
reemployment via the Employment Success Package (ESP) program that provides an integrated trillion won was injected to support 1.76 million persons. Most of the work process were
employment support from job-seeking counseling to vocational training and job placement.

computerized and automated and various forms of documents verifying income and sales
reduction were recognized in order to promptly handle the paperwork to provide the subsidy.
However, the Employee Retention Subsidies program and unemployment benefits can
provide support to a limited group of people who are subscribed to the Employment Insurance,
as they are both financed by Employment Insurance Fund. This means that the dependent self-
employed such as learning-aid tutors, credit card solicitors, and parcel delivery workers, as well
as freelancers and micro-business owners cannot benefit from the system. Moreover, despite the
improvements in the Employee Retention Subsidies program, not sufficient support is provided
to those on unpaid leave. Upon such recognition, Korea made significant endeavors to provide
livelihood support to those not covered by the Employment insurance as can be found below:
③ Job creation in the public and private sectors
First, the Korean government newly introduced “Special Support Program for Regional
Employment.” This program gives local governments greater discretion as to how to designate The public sector playing the role of priming water is important in a situation where
the target of support, what kind of support to provide, and in what ways the support will be the private sector’s capacity for job creation is very low due to COVID-19. As such, the Korean
III. Appendix
provided, with a focus on reaching out to those in the blind spot of employment safety net in government is directly creating jobs and also providing financial support for businesses hiring
local communities who are not getting enough support from the central government. Through new employees.
this special support program, local governments provided monthly subsidy of up to 500,000 First, in the public sector, the government’s direct job creation project (to create 945,000 jobs),
won for two months to support the livelihood of the dependent self-employed, freelancers, that was already underway before COVID-19 but temporarily suspended due to the spread of
and those on unpaid leave, or provided short-term jobs or vocational training. A total budget the virus, is resumed in a step-by-step manner. The resumed project is focusing on creating
of 200 billion won was allocated in this special support program, and 209,000 dependent self- jobs that involve tasks conducted outdoors or contact-less tasks, and those who lost their
28 29

jobs or closed their businesses, and the dependent self-employed and freelancers that have conditions in the labor market. The program aims to create jobs for 50,000 young people.
suffered drastic income losses are considered priority groups. Considering that the existing subsidy for employment promotion for new hires is 300,000-
600,000 won per employee, the Special Subsidy for Employment Promotion program is
Second, The government is pushing to create 115,000 “contactless and digital jobs” that
expected to serve as a strong incentive for businesses to hire new employees.
can contribute to the common good and help young people develop their careers. Currently,
18 ministries are working together in 60 types of different projects, including assistants for
university online lectures, establishing AI learning data, and establishing data for workplace
safety and health. The contract period is 1-5 months, and working hours and wages vary for
different projects.
Third, a new project in which local governments hire 300,000 people from vulnerable groups
hit by COVID-19 to perform public work. The participants perform duties such as assisting
3) Vocational skills development policy

everyday disease control and prevention work, supporting recovery of commercial districts
and alleys, and assisting economic activities in rural areas. The participants work 15-40 hours The Ministry of Employment and Labor (MOEL) is pursuing policies focused on innovation-
per week for four months and are paid minimum wage (670,000 won-1.8 million won per led growth and development of future talent through vocational skills development to respond
month). to changes in the labor market brought by the Fourth Industrial Revolution, namely changes in
• On the other hand, in the private sector, the government is providing support to create jobs industrial structure, forms of employment and demand for different skill sets and qualifications.
for the young people, who are directly affected by COVID-19 as the number of new hires
rapidly decreased.
On April 10th, 2019, MOEL launched "Vocational skills development innovation measures"
First is “Digital Jobs Program for the Youth,” which subsidizes labor costs of up to 1.8 million to enhance people's adaptability to new technologies and industries and to improve lifelong
won and 100,000 won for indirect labor costs for six months to SMEs that hire young people employability, and accordingly, step by step measures are underway.
in IT-related positions, such as content planning, big data analysis, etc. The program aims to
provide jobs to 60,000 young people.
First, to improve people's adaptability to new jobs and to foster skillful talent in the age of
Second, “Job Experience Support Program for Youth.” This program subsidizes labor convergence, vocational development programs are putting more emphasis on new technology
III. Appendix
costs up to 800,000 won for six months to SMEs that offer job experience opportunities to
sectors.
young people by hiring them for a short period of time. The program aims to provide job
• Through K-Digital Training, a training course for new digital technologies, the government
experiences to 50,000 young people.
plans to foster 180,000 future-oriented key individuals in the field of new digital technologies
Third, “Special Subsidy for Employment Promotion” program. This program provides up during 2021-2025. The government is also continuously expanding specialized training such
to 800,000 won to 1 million won per month per employee for six months to SMEs that hire
as Polytechnic hightech courses, and introduced contactless·highly promising technology
unemployed person who was experiencing difficulties finding jobs due to the worsened
sectors such as AI·smart logistics in NCS courses.
30 31

Second, MOEL brought a paradigm shift in training to support lifelong vocational education
and training for all Koreans.
National Competency Standards (NCS)
• From 2020, Tomorrow Learning Card system that previously differentiated the unemployed
The National Competency Standards (NCS) are a set of standardized knowledge,
and employed, will be integrated into National Training Card system. With the new system,
skills and understanding required to perform particular jobs in the workplace, developed
the training cards will be issued to those who previously did not benefit, such as short-time
by the government for different industries and competency levels. These standards are
workers, the dependent self-employed and micro-business owners, thereby addressing the
used to systematically update the vocational education/training and qualification systems
blind spots in vocational training.
to meet the needs of industries (jobs) and encourage businesses to adopt competency-
based HRM (recruitment, promotion, wages, etc.). • In addition, to reduce constraints of time and space and to support new ways of training
through actively deploying e-learning system, MOEL launched and operates Smart Training
* Developed 1,022 NCS in 24 categories and issued notification (in June 2020)
Education Platform (STEP) from October 2019.

Ever since 2015, new NCS have been developed each year for promising industries Third, MOEL seeks to enhance vocational skills development system and governance to
and new types of jobs to keep up with every paradigm shift in industries (about 10 NCS improve the quality of vocational training.
developed each year).
• I ndustry Skills Councils have been designated as institutions responsible for

developing and improving NCS. A network of businesses, schools and experts
participate in the review and updating of NCS on a regular basis.
•P
rovided tailored consulting services to SMEs (4,634 businesses) from 2015 to 2019
so that they can actively utilize NCS in recruitment, human resource development and
management.
III. Appendix
• Integrated learning environment for practical training that offers more than manufacturing
process-oriented training are being established, such as Korea University of Technology and
Education's K-Factory, Polytechnic Learning Factory, and they are planned to be utilized to
make convergence education and training more widely available.
32 33

4) Employment service policy for businesses to find the right candidate for the job.
Since 2019, MOEL has been making efforts to establish “National Job Opening Information
Platform,” that would let job-seekers find information on job openings managed by the ministry
Employment service policy helps match job seekers with potential employers. The
government provides comprehensive employment services, including provision of information
on job seekers and job openings, career guidance and vocational training. By promptly matching Job&competency-based matching Recruitment&Job-search data-based matching Behavior-based matching
Resume-Recruitment
notice matching
talented workers to companies in need of workers, employment services support efficient Recruit-
recruitment notices
Recruitment notices
Cluster of ment&- rapid information extraction (job title, job description)
from recruitment notices
utilization of human resources at the national –level and contribute to the growth of individuals
recruitment notices Job-search
for business
management and data-based Recommendation
planning
matching between groups
and companies. Position Region Pay Requirements
(certificates, licenses)
with similar
behavior patterns
Resume-Recruitment notice matching
and interests
Business management
and planning
• The role of employment services is becoming increasingly important as the economy's ability Big data
Recruitment&Job-search data-based matching
to translate growth into job creation is weakening and people change jobs more frequently. Position Region Salary
requirements
Requirements Browsing history

(certificates, licenses)
Recruitment
notices Analyze
Resumes weblog
Job application history
Job
Reflects the results
of job matching rapid information extraction
from resumes
Job-Dictionary Doc2Vec
Ontology Word2Vec resumes, CVs History of WorkNet activities
Against this backdrop, the government is focusing on how to advance employment
services. For a start, a sweeping reform is underway to enhance employment services.
• As MOEL sees identifying businesses currently employing or seeking to employ workers is
and relevant organizations at a glance. Once this system is up and running, it is expected to not
important to address mismatch between jobs and skills, it operates "Job opening search team"
only reduce the mismatch between job openings and job seekers by providing job-seekers with
from 2016, which finds businesses that offer quality employment opportunities. In 2019, 5,000
information on the type of talent wanted by the businesses, but also enable information analysis
were selected among such businesses to receive special support in recruitment, and it led to
on jobs in different regions and industry, which will be useful in developing employment
16,000 successful job placement.
policies.
• MOEL also runs a competency enhancement program for career counselors to provide better
counseling services to jobseekers. In particular, the Ministry has set up a new six-week
training course targeting talent with great potential and granted the graduates the official title Future employment services will be characterized by one-stop services, convergence and
of Career Consultants to give them a sense of responsibility for their expertise. enhanced support for vulnerable groups. For those who need both employment and welfare
III. Appendix
services, the government provides a one-stop channel through Employment -Welfare Plus
Centers.
MOEL deployed AI Chatbot service that conducts a conversation with people to make
• The number of Employment-Welfare Plus Centers were 10 in 2014, but it rapidly grew to 98
job-search counseling available 24/7 (started its pilot operation in March 2019), and deployed
centers as of the end of 2017. The centers provide a variety of integrated services such as
the Work AI, that integrates the existing big data-based recommendation algorithm with AI
employment, welfare, and micro-finance services.
technology, from July 2020 to recommend more fitting jobs to job-seekers and to make it easier
34 35

MOEL is also working to expand the Employment Success Package Program (ESPP)
Job&competency-based matching Recruitment&Job-search data-based matching Behavior-based matching which provides employment support to jobseekers from low-income families and young
Resume-Recruitment
notice matching
jobseekers. The number of ESPP participants increased from 230 thousand people in 2013 to
recruitment notices
Cluster of recruitment
Recruit-
ment&- Employment-Welfare Plus Center
rapid information extraction from
recruitment notices
Recruitment notices
(job title, job description) 361 thousand in 2017, and the employment rate of the participants also jumped from 55.2% to
notices for business Job-search
management and
planning data-based Recommendation 68.9% over the same period.
matching
Employment and welfare services had been provided in
between groups
Position Region Pay Requirements with similar
(certifıcates, licenses)
behavior patterns
Resume-Recruitment notice matching a fragmented way in different places according to service type
and interests
business management
and planning
* Number of participants (unit: 10,000 persons)
and target people, sodata-based
Recruitment&Job-search peoplematching
had to visit a number of agencies to
big data
* Number of participants (unit: 10,000 persons)
receive those services.
Position Region Salary ToRequirements
address this problem, the government
Browsing history
requirements
recruitment (certifıcates, licenses)
Analyze 36.6 35.2
notices
resumes has opened Employment-Welfare Plus Centers. weblog
29.5
Job application history 30.8
job 19.4 36.6
reflects the results rapid information extraction 35.2 18.8
of job matching
• Through the Centers, people can get customized services of
from resumes 29.5 30.8
12.1
Job-Dictionary Doc2Vec 19.4
Ontology Word2Vec resumes, CVs
different employment Historyin
and welfare service agencies of one
WorkNet activities
place. 18.8 12.1
2014 2015 2016 2017 2018 2019 2020.7

2014 2015 2016 2017 2018 2019 2020.7
** Employment rate(%)
** Employment rate(%)
74
66.2 64.1
60 63.8 61.5
57.4 74
66.2
% 60 63.8 64.1 61.5
connect them to 57.4
% 2014
Those who employment service agencies 2015 2016 2017 2018 2019 2020.7
Welfare can work Employment
service service ↳ Please note that the statistics for 2018~2020 are incomplete,
2014 2015 2016 2017 2018 2019 2020.7
as Employment Success Package program’s step-by-step support is still under implementation
recipients Those who need recipients ↳ Please note that the statistics for 2018~2020 are incomplete,
connect them to welfare services
as Employment Success Package program’s step-by-step support is still under implementation
welfare service agencies
• In particular, the government temporarily reintroduced job search promotion subsidy for
those from low-income households*, taking into account that the spread of COVID-19 made
III. Appendix
*Starting with the establishment of the Namyangju Employment-Welfare Plus Center,
employment situations of the vulnerable difficult in order to stabilize their livelihood and
MOEL additionally set up 10 such centers in 2014, 30 in 2015, 30 in 2016 and 28 in
2017, bringing the total number of them to 98 nationwide. enable them to engage in job-search activities.
* ▲ Target
of support: New participants in 2020 with a household income of 60% or less
that have moved on to the third step
▲ Provided
support: 500,000 won a month for up to three months under the condition
that the participant engages in job-search activities two times a month
36 37

Employment Success Package Program 5) Employment policy for women and youth
The Employment Sucess Package Program provides customized comprehensive With the national strategies of gender equality and respect for labor, the government
employment support based on individual counseling to vulnerable groups in the labor aims to expand jobs for women, with a focus on heeding voices from the ground.
market, including jobseekers from low-income families and unemployed youth and
older people: (Stage 1) diagnosis and motivation boosting; (Stage 2) development • The government also aims to enhance the economic growth potential and realize a fair
of vocational skills and organizational adaptation capabilities; and (Stage 3) job society free of discrimination by taking such measures as creating a non-discriminatory
placement. employment environment, preventing career breaks due to childbirth or childcare, and
promoting women’s reemployment.

Stage 1 Stage 2 Stage 3
Counseling, motivation Vocational skills Expanding female employment is a key means of realizing a non-discriminative fair
Job placement
boosting, path-setting development
(3 months) society through gender equality and respect for labor, one of the new government’s national
(3 weeks~1 month) (max. 8 months)
strategies. It is also a very important challenge directly related to the economy’s growth
* Intensive counseling * Vocational training * Intensive job placement potential especially in a low-fertility and ageing society.
* Vocational psychological test (max. 2~3 million won) (provide recruitment
* Group counseling * Linked with internships (youth information and accompany the
* E stablishment of individual and older people) applicant for job interviews)
action plans for employment * Linked with business start-up
training programs
Although female employment in Korea has been increasing in quantity, it is still low
compared to the OECD average and male employment. Women experience career breaks
largely because of childbirth or childcare, resulting in an M-shaped curve of female labor force
Employment success allowances
Training allowances
Participation allowances
(max. 400,000 won per month
for participants from low-income participation.
(max. 250,000 won) families
for 6 months)
(max. 1.5 million won)
III. Appendix
In response to such issues, the government is faithfully carrying out its “Sixth Basic Plan
for Gender Equality (introduced in December 2017)” to create a better work environment for
women.
• The government conducts Smart Labor Inspection* on 400 establishments by using

relevant information from National Health Insurance Service and Employment Insurance.
38 39

* <National Health Insurance Service> Provides information on workplaces with workers MOEL will reinforce support for employers to create an environment in which workers
that are pregnant or have given birth → <Korea Employment Information Service> Sort can feel free to utilize the maternity protection system without feeling guilty.
out and provide information on workplaces suspected of illegal activities, such as dismissal
• The ministry will extend the period of support for SMEs that grants their workers parental
of workers that are pregnant or have given birth and failure to grant maternity leaves
leave, shorter working hours during childcare period, etc., and also raise the amount of
→ <Ministry of Employment and Labor> Perform pooling on workplaces to be subject
subsidies.
to inspection and forward the information to regional employment and labor offices →
*▲ Expanded
indirect labor costs for SMEs: a monthly subsidy of 200,000 won is provided
<Regional Employment and Labor Offices> Confirm workplaces to be subject to inspection
when SMEs grant their workers shorter working hours during childcare period → the
and conduct inspections
monthly subsidy is raised to 300,000 won (as of January 2019)
▲ Expanded
support for SMEs that hire substitute workers: extended the period of transfer
of job responsibilities in which support is provided (from two weeks →two months),
MOEL supported the improvement and distribution of a sexual harassment self-diagnosis

raised subsidy amounts for hiring substitute workers during the same period (from
app so that it could be used as a self-diagnosis tool and an education material for sexual
600,000 won a month→1.2 million won a month)(as of January 2019), and raised subsidy
harassment prevention courses. The ministry also works to raise awareness on workplace
amounts provided for periods before hiring substitute workers (from 600,000 won a
sexual harassment and supports sexual harassment prevention courses at workplaces by
month→800,000 a month)(as of January 2020)
producing and distributing educational video content for prevention of workplace sexual
harassment (separate versions for workers and HR officers in charge).
• The payment of a subsidy that was originally provided after checking whether the worker
that took parental leave is still hired at the workplace was changed (in March 2020) to
enhance the perceived effectiveness of the policy by businesses, and now this 50% of this
MOEL plans to make improvements in the parental leave system so that both parents subsidy is planned to be provided during the period of a worker’s parental leave.
can use parental leave at the same time for the same child, creating an environment for dads to
take part in child-rearing. MOEL also plans to raise the first three-month parental leave benefits
for single-parent workers to strengthen support for single-parents.
Newly established Family Leave (in January 2020) of up to 10 days a year that can be
used when one needs to take care of their family members due to illness, accident, old age, or
* (As-is) 80% of the ordinary wage for the first three months, with a monthly cap of 1.5 million
III. Appendix
childrearing.
won →50% of the ordinary wage for the rest of the parental leave, with a monthly cap of 1.2
million won(To-be) 100% of the ordinary wage for the first three months, with a monthly cap
• Considering the fact that family care leave is unpaid and accompanied by economic
of 2.5 million won →80% of the ordinary wage for the second three months (fourth month to
difficulties, the government plans to provide subsidies to workers who used family leave for
sixth month), with a monthly cap of 1.5 million won →50% of the ordinary wage for the rest
reasons related to COVID-19.
of the parental leave, with a monthly cap of 1.2 million won
40 41

In addition, the government is making efforts to strengthen childcare support for Government policies and programs for young people
workers, helping to establish public childcare centers (10 centers) near residential areas and
win-win cooperative workplace childcare centers (designated 13 centers as of 2019).
Skills development
• Before getting employed: Job search promotion subsidy, talent development

for the Fourth Industrial Revolution
Youth • After getting employed: Provide support for universities that offer courses
exclusively for people who enter labor market first and seek higher education
later, established scholarship for those who “work first, study later”
Youth employment challenges continued due to low demand for young people in the

labor market, skills mismatch, and people in their late 20s starting to enter the labor market in
earnest.
Finding employment
• Accordingly, MOEL created quality jobs for young people and supported their self-directed
• Businesses: Package support including Additional Youth Employment Subsidy
job-seeking activities. In addition, to abolish unfair practices in hiring and recruitment
Program, Job Creation Tax Credit, Improvement of R&D system
process, Youth Employment Measures were announced in March 2018, a product of inter-
ministerial cooperation, and follow up measures are underway. • Young people: Tomorrow Mutual Aid Program for Young Employees, Income
tax reduction for young SME employees (by 90 percent for five years), low
• Strategies that involve providing bold incentives are being implemented for example, interest loan for house rent deposit
reducing the income gap between young people employed by large businesses and SMEs
through providing support for young people who find work at SMEs, providing incentives
to businesses that hire young job-seekers, supporting young people to start their own
Starting a business
businesses, and strengthening support for "job first-education later" programs.
• Before starting a business: Success repayable loan program promoting
III. Appendix
innovative start-ups, start-up voucher program for start-ups with innovative
technologies
• After starting a business: Newly established a voucher program to support

businesses (accounting, tax, labor, patent, etc), post-TIPS business scale-up
fund
42 43

• The government is making efforts to expand job opportunities for young people with its Government policies and programs for young people
targeted policies.* In particular, the government actively implements Additional Youth
Employment Subsidy Program and expanded Tomorrow Mutual Aid Program for Young
Employees. The government also initiated Job search promotion subsidy, which provides Job
500 thousand won a month up to 6 months for young job-seekers who conduct self-directed
• New Job Making Lab, expand exclusive loans for young entrepreneurs, SME
job search.
Clean Up program where SMEs hiring young people can get subsidy to renovate
* Additional Youth Employment Subsidy Program: SMEs hiring young people as regular their facilities.
employee can receive a subsidy of 9 million won per year for up to three years
Housing
* Tomorrow Mutual Aid Program for Young Employees: Young SME employees can get
government support to accumulate wealth (2 Year plan: 16M won or 3 Year plan: 30M won) • Pursue building public housing facilities, share-houses near public transportation

stops, low interest loan for house rent, etc.
*Job search promotion subsidy: Young job-seekers who conduct self-directed job search can
receive a subsidy of 500 thousand won per month for up to 6 months
Education
• The government also established a plan to help fair recruitment practices take root and • Expand scholarship for those who "work first, study later," increase subsidy for
measures to promote them in the private sector (in November 2019), laying the foundation programs that connect highschool education to workplace.
for merit-based recruitment without discrimination in the public sector and promoting
adoption of fair recruitment practices for the public sector by revising the Fair Hiring Vulnerable groups
Procedure Act (in July 2019), prohibiting forcing employment, etc.
• Establish savings account for young people, revive Sunshine Loan, etc.
The government announced “Reinforcement measures for ladder of hope for the youth”
in cooperation with relevant ministries in July 2019, in an effort to strengthen measures to
III. Appendix
improve the perceived difficulties felt by young people after listening to their voices.
In 2020, the COVID-19 employment shock significantly affected young people, who have
• With the announced reinforcement measures, the government seeks to address every blind experienced declines in the number of the employed (-195,000 as of July 2020).
spots in its policies targeting young people, creating more quality jobs. It will also enable
• In response, the government is making best of its efforts to support youth employment, for
the government to pursue policies related to everyday lives of young people from housing,
example by expanding the budget for policies and programs for young people* and newly
education to livelihood of vulnerable groups, ensuring that young people can feel the actual
establishing support programs targeting young people**.
benefits from government policies.
44 45

* Doubled the number of recipients of Youth Job Search Promotion Subsidy (from 50,000 6) Employment policy for the elderly and the disabled
persons→100,000 persons)Increased the number of participants for Youth Employment
Success Package Program (50,000 persons→130,000 persons)Increased the budget for
Additional Youth Employment Subsidy Program (+ 435.1 billion won) Korea's demographic structure is changing, becoming an aged society (a society in
which the population aged 65 or older exceeds 14 percent of the total population) in 2018, and
** ▲
(Support program for jobs in IT-related fields for young people) The program provides
projected to become a super-aged society (a society in which the population aged 65 or older
a subsidy (to +60,000 persons) when micro-businesses and SMEs hire young people in IT
exceeds 20 percent of the total population) by 2025.
positions ▲ (Support program for young people’s work experience) The program provides
a subsidy to cover for part of young people’s salary when SMEs hire young people as part-
time workers (+50,000 persons).
• As people in their 50s and 60s make up a large portion in the working-age population,
fostering an enabling environment for them to remain part of active workforce and

work longer in the labor market, and supporting their reemployment have emerged as a
challenge.
Incentives for businesses that support older people to stay longer in their "main jobs"
have been expanded.
• A support policy is newly established for businesses that adopted Continued employment
policies (reemployment after an employee reaches retirement age, abolishment of
retirement age, raising the retirement age) to receive a monthly subsidy of 300 thousand
won per elderly worker from 2020.
III. Appendix
• In addition, the amount of subsidy for hiring those aged 60 or over is raised from a
quarterly subsidy of 240 thousand won to 270 thousand won per worker.
46 47

The government strengthened support for reemployment support services for the The government strengthened support to maintain employment for people with
elderly to get them ready for a career change so that they can continue to work in the labor disabilities, a vulnerable group in the labor market, in consideration of the employment crisis
market. spurred by COVID-19 in 2020.
• As the National Assembly passed the revised "Act On Prohibition Of Age Discrimination • In calculating the penalty for not employing the disabled, the payment period in which the
In Employment And Elderly Employment Promotion", it will become mandatory for an benefits for suspension of work were paid during the period in which infectious disease risk
employer with more than 1,000 employees to provide reemployment support services to alert was issued for COVID-19 are included in the period of basic wage payment.
an employee who has to involuntarily leave current work and opt for a career change from
• MOEL allowed overlapping payment of Employee Retention Subsidy and Subsidy for the
May 1st, 2020.
Employment of the Disabled at the same time. This was to relieve the burden on employers
• In 2019, the "Lifelong career planning service," that helps people design their future based with many employees with disabilities to retain their employees even when they are
on their career paths, was provided to 32,514 people. temporarily suspending their businesses due to COVID-19.

• In addition, the government is continuing to expand incentives for employers hiring elderly • In order to help sectors whose employment is most at risk due to COVID-19 overcome
citizens and to increase direct job offerings for the elderly by exploring suitable jobs for the crisis, MOEL also deferred payment of the penalty for not employing the disabled, and
them. granted deferment of disposition on default for the designated Special Employment Support
Sectors.
In May 2019, the employment rate of people with disabilities stood at 34.9%, lower than
the overall employment rate (of 61.5%), but compared to the previous year (of 34.5%), the MOEL announced “Measures to strengthen employment policies tailored to people
figure increased by 0.4%p. with disabilities,” (in May 2020) which contain services tailored to meet the needs of support
recipients at every stage of life·for different types of disabilities.
• MOEL raised employment promotion subsidy for people with disabilities to be up to

• The employment rate of people with disabilities calculated according to international
800,000 won from 2020 to promote their employment, and expanded support for helpers
standards (the employment rate of people with disabilities aged 15-64) was 50.0% as of
III. Appendix
(3,000 helpers → 5,000 helpers)·assistive engineering instruments (10,000 instruments →
2019, which is above the OECD average (of 47.6%), close to that of Germany (51.5%), and
11,000 instruments) to support stable employment of people with disabilities.
higher than that of Japan (44.2%), countries that have a mandatory employment quota for
people with disabilities.
Moreover, the government is continuously expanding infrastructure for employment

services to foster talent (pursuing to newly establish Korea Research Institute for Vocational
48 49
02

Education and Training in the metropolitan area, establishing more training centers for
people with developmental disabilities*). Protecting Working Conditions and
* The number of training centers for people with developmental disabilities have increased
Improving Employment Practices
from 13 in 2019 → to 19 in 2020
• In addition, as it became mandatory by the law in 2018 for employers to provide education
on having disabled colleagues, the government provided policy support to help effective
compliance such as training of professional instructors, designation of educational
1) Protecting working conditions
institutions, development and distribution of educational content, promoting public
awareness on the obligation to provide such education, provision of free instructors to lead
The Labor Standards Act in Korea prescribes standards for working conditions, such
the educative session, compliance monitoring, etc.

as wages, working hours, holidays and leave, and thereby provides the legal basis for
guaranteeing and improving workers' basic livelihoods. The law stipulates the minimum to be
kept, and working conditions must not be degraded below those standards. In principle, the
Labor Standards Act applies to all businesses or workplaces ordinarily employing five workers
or more. However, some of its provisions (on weekly holiday, recess hours, wages, advance
notice of dismissal, retirement benefits, etc.) apply even to businesses or workplaces ordinarily
employing four or fewer workers depending on the financial conditions and capabilities to
comply with the law.
The 2020 minimum wage was set at 8,590 won an hour, a 2.87% rise or 240 won increase
from the 2019 minimum wage. A public notice was issued on August 5th, 2020, announcing
that the 2021 minimum wage would be set at 8,720 won an hour. The government conducts
III. Appendix
continuously inspections and provides guidance on labor management to support soft landing
of the new minimum wage, and also provided 1.8 trillion won to Job Stability Funds program in
2020, following the implementation of the same program in 2019 (as of August) to relieve the
burden for micro-businesses and SMEs.
50 51

cultures and certifying companies which have shown outstanding performance in reducing
Director Planning Department working hours.
MOEL is working to sharply increase the number of labor inspectors with law enforcement Moreover, by signing a consignment contract withe th Korea Certified Public Labor
authority to ensure appropriate working conditions in workplaces and realize a just labor market. Attorneys Association, the government provides support to workplaces with fewer than 20
The Ministry is also preparing a labor inspection innovation plan to make labor inspection more employees and newly established workplaces, which are less capable of managing their labor
effective and strengthen its function of preventing problems, such as payment delays. affairs, to voluntarily check whether they are in violation of labor laws, make improvements,
and get counseling services by seeking help from labor management specialists, such as labor
* Number of labor inspectors: (2017) 1,450 → (2018) 1,902 → (2019) 2,213 → (2020) 2,290
attorneys, before labor inspectors are sent to conduct inspections.

To ensure that the basic labor order is in place, intensive inspections were conducted on
establishments with records of repeated or habitual delayed payment of wages. As for micro-
Support for voluntary improvement of working conditions
businesses, inspections centered around guidance and voluntary corrections were conducted (on
5,031 establishments during the first half of the year and 5,022 establishments during the second
half) to encourage businesses to comply with the basic labor order. Labor management specialists assist micro and small-sized workplaces with
poor working conditions in self-checking and improving their working environment.
The government supports part of the costs incurred.
Meanwhile, the government has continued its various efforts to improve people's
health and quality of life and increase productivity by reducing working hours. According to
the amended Labor Standards Act promulgated on March 20th, 2018, the maximum weekly
working hours is down from 68 hours to 52 hours, and even in the case of industries exempted
from the new working hour regulations, employers must grant workers a daily rest period of at Labor management
specialists, such as
least 11 hours. In addition to making institutional improvements related to working hours, the employers' organizations
MOEL
(creation of a task Workplaces
government has conducted inspections of major industries and workplaces with long working
III. Appendix
MOEL (analysis of results
force and assistance to (implementation of
(budget support) and follow-up
hours all year round. With the aim of reducing long working hours and thereby creating jobs, the workplaces in establishing improvement plans)
management)
and implementing
government subsidizes employers who reduce working hours, reform their shift work schemes, self-assessment and
improvement plans)
provide regular education and training and grant sabbatical leave. It has also helped SMEs
voluntarily reduce their working hours by developing and distributing job-sharing manuals
and holding information sessions, and strives to create a social consensus and improve public
awareness by conducting a nationwide campaign to improve work arrangements and work
52 53

2) Improving employment practices System of correcting discrimination against non-regular workers
Meanwhile, the Act on the Protection, etc. of Fixed-Term and Part- Time Employees and Employers are prohibited from giving unfavorable treatment to non-regular
workers performing jobs that are same as or similar to those of regular workers in
the Act on the Protection, etc. of Temporary Agency Workers were established and implemented
terms of wages, regular bonuses, performance pay and other working conditions and
to strengthen protection for non-regular workers (whose number stood at 7.481 million as of fringe benefits without reasonable grounds.
August 2019, accounting for 36.4% of all wage workers) on matters including working conditions, A non-regular worker subjected to discrimination may file a request for
etc. correction of discrimination within six months from the date of occurrence of
the discrimination (the end date of the discrimination in cases of continuing
* (Fixed-term employees) Limits period of service to two years, (Part-time employees) discrimination).
Obligates payment of additional wages work performed during hours that exceed the
Each discrimination case is handled by the Regional Labor Relations
contractual work hours, (Temporary agency workers) Limits the type of work that may be Commission or the Regional Employment and Labor Office having jurisdiction over

performed by temporary agency workers, and period of service the seat of the workpalce where the discrimination occurred.
• Accordingly, MOEL conducts inspections and provides guidance for businesses to check the •A
ny party dissatisfied with the competent Regional Labor Relations Commission's
compliance on the lawful management of non-regular workers. Upon identifying illegal use corrective order or decision to dismiss the case may file an appeal with the
National Labor Relations Commission. If the party is still dissatisfied with the
of dispatched temporary agency workers, measures such as issuing of corrective orders for
results of the appeal, it may bring an administrative lawsuit.
direct employment are taken.
* In cases where a complainant files a request for correction of discrimination with
the Regional Employment and Labor Office, if the respondent refuses to comply
with a corrective order of its labor inspector, the case is notified to the competent
In particular, the government operates a discrimination correction system, and provides Regional Labor Relations Commission.
education · counseling · consulting services to resolve discrimination between regular and non-
regular workers.
• The government also implements a policy that covers part of personnel and labor costs in
order to encourage businesses in the private sector to actively convert their non-regular Complainant Respondent
workers into regular status.
III. Appendix
Fixed-term worker Employer (party to the
Part-time worker employment contract)
In addition, the government is seeking to reform the current discrimination correction

system, including the expanding the comparison groups for non-regular workers, to double up Employer using or sending
Dispatched worker
the efforts to narrow the gap between regular and non-regular workers’ working conditions. the dispatched worker
54 55

3) Promoting Labor Welfare
❸ (Temporarily raised the limit on the total amount of loan per person) from 20 million won→30
million won (Jul.1.~Dec.31.)
Furthermore, the government offers the Employee Assistance Program (EAP), livelihood
(Types of loans) medical expenses, parent care expenses, funeral expenses,
security loans, credit guarantee support, etc. to promote the welfare of workers. As corporate
wedding expenses, children's school expenses, living expenses during pay cuts,
welfare measures, the government implements the Employee Stock Ownership Plan (ESOP) living expenses during payment delays and living expenses in small amounts
which allows workers to acquire their company's shares, thereby helping workers build wealth
and contributing to labor-management cooperation, and the Employee Welfare Fund System
Employee Stock Ownership Plan
which requires employers to contribute a portion of their company's operating profits to create
a fund and use it for employee welfare. In addition, the government operates the Retirement
Pension System which requires employers to set aside an amount equivalent to retirement The Employee Stock Ownership Plan allows workers to acquire or hold their
company's shares with their own money or money contributed by their employer

benefits at a financial institution outside the company and pay their employees pensions in the
through the employee stock ownership association, thereby helping workers build
form of an annuity or a lump sum at retirement in order to strengthen employees’ retirement wealth, creating cooperative labor-management relations and improving corporate
income security. productivity.
Employee Welfare Fund System

Livelihood security loan
Livelihood security loans are offered at a low interest rate to workers from low-
The Employee Welfare Fund System requires employers to set up a fund
income vulnerable groups and workers who are experiencing livelihood difficulties
using part of their operating profits and manage and operate it efficiently, thereby
due to pay cuts or payment delays, to support their livelihood security.
contributing to workers' livelihood security and welfare, increasing workers' real
incomes and boosting the desire to work and a sense of community between labor
(Loan requirements) Repayments should be made in equal installments over and management.
three years at an annual interest rate of 1.5% after a one-year grace period. In the
case of requests for two or more types of loans, the maximum amount of loan should
Retirement Pension System
be 20 million won per person. (The maximum loan amount differs according to type
III. Appendix
of loan.)
* T
emporarily eased the loan requirements, etc. due to the spread of COVID-19
The Retirement Pension System is a retirement benefit system introduced in
❶ (Temporarily eased the loan requirements) for three-person households, earning 2/3 of median 2005. It requires companies to accumulate necessary funds for retirement benefits at
income or less→for three-person households, earning less than median income (Mar.9.~Dec.31.) an outside financial institution in advance, so that workers can receive pensions in the
❷ (Temporarily raised the maximum loan amount) Living cost to support income reduction (from form of an annuity or lump sum when they retire. The system (defined-benefit type
10 million won→20 million won), Small amount of living cost (2 million won→5 million won) and defined-contribution type) enables workers to plan for their life after retirement.
(May.1.~Dec.31.)
56 57
03

Classification Retirement pay Defined-benefit Defined-contribution
Realizing a Society Where Labor Is
retirement pension plan retirement pension plan
Respected
Form of retirement Lump-sum Annuity or lump-sum Annuity or lump-sum
benefit payment payment payment payment
Characteristics The employer The worker’s retirement The employer’s contributions

accumulates the full benefits are pre determined, are pre determined, and
amount inside the and the employer’s the worker’s retirement
company. contributions may change benefits may change
depending on the results of depending on the results of Reached the Tripartite Agreement to Overcome the COVID-19 Crisis and further build upon
→ Benefits are
fund management. (outside fund management. (outside
vulnerable to
accumulation of a partial accumulation of the full
the agreement
bankruptcy.
amount) amount.)

Operator of the Employer Employer Worker • The unprecedented crisis due to COVID-19 pandemic is intensifying the difficulties faced
pension assets
by businesses and threatening jobs, which prompted the tripartite members to form a
consensus this crisis cannot be addressed by efforts of a single party.
• Under the recognition that solidarity and cooperation is vital, the tripartite members
reached the Tripartite Agreement to Overcome the COVID-19 Crisis (on July 28, 2020), after
spending more than 40 days having dozens of intense discussions and debates, and further
discussions by the Economic, Social and Labor Council (ESLC).
• The main contents of the agreement include the role of the tripartite members to maintain
employment; expanding efforts to help businesses and protect industry ecosystem;
introducing universal employment insurance and expanding the social safety net for the
vulnerable; and enhancing national disease control system and public medical infrastructure.
• Following the announcement of the agreement, a special committee was launched in the
III. Appendix
ESLC to check the implementation of the agreement. The spirit of cooperation seems to
be spreading among tripartite members, as exemplified by voluntary signing of follow-up
agreements in different regions · sectors.
58 59

Expanded tripartite social dialogue and win-win regional level job creation model • The government’s legislative bills were awaiting to be discussed at the Standing Committee
of the 20th National Assembly, but were automatically discarded as the its term ended on
May 29, 2020.
• T he government facilitated active cooperation and communication among labor,
• The government, in recognition that ratification of ILO fundamental conventions is an urgent
management, civil society, and the government, so that the culture of labor-management
and crucial matter both for national prestige and national interest, submitted amendments to
win-win cooperation would further spread, that labor-management relations would be
TULRAA (on June 30, 2020) and ratification motions for the fundamental conventions (on July
stabilized, and that more jobs would be created at the regional level.
14, 2020) to the 21st National Assembly immediately after it opened, and plans to do utmost
* In 2020, 1556 million won was provided in government subsidies to 65 local governments
so that they would pass the National Assembly.
for the operation of the local labor-management-civil society-government council, and 55
regions announced win-win measures to overcome the COVID-19 crisis and to maintain
employment as of August 14, 2020

• In particular, through win-win local job creation consulting services*, the government Systematic efforts to prevent labor-management conflicts
supported development of regional level job creation models that is tailored to regional traits
and circumstances, and signed an win-win agreement with five cities and counties—Gwangju,
• The government made efforts to prevent conflict and dispute between labor and
Miryang, Gumi, Hoengseong, Gunsan.
management, and also supported labor-management bargaining when conflict arises.
* <2017> 300 million won (4 offices), <2018> 800 million won (8 offices), <2019> 1.6 billion
• Through policy consultations and other active communication with labor and management
won (9 offices), <2020> 1.6 billion won (8 offices)
organizations on important labor issues, the government was able to prevent unnecessary
conflict and promote the spirit of cooperation between labor and management.
Improved law and systems in order to ratify ILO fundamental conventions
• As a result, the number of lost work days due to labor-management conflict was reduced by
• The government made an announcement (on May 22, 2019) on its positions regarding the 36% y-o-y* and recorded the lowest figure in 20 consecutive years.
developments for the ratification and legal revisions for three* of the four ILO fundamental
* The number of lost work days was 296,000 in 2019, whereas it was 479,000 in 2018.
conventions which Korea has yet to ratify.
III. Appendix
* Forced Labour Convention (No. 29), Freedom of Association and Protection of the Right to
Strengthening labor and human rights education
Organise Convention (No. 87), Right to Organise and Collective Bargaining Convention (No.
98)
• MOEL submitted amendments to laws (TULRAA, etc.), based on the final proposal (issued • The government established a system for promoting labor education and supported active
on April 15, 2019) of the public interest members of the ESLC, to the National Assembly (on provision of education to establish a proper awareness of 'labor.'
October 4, 2019) in order to ratify the Freedom of Association convention.
60 61
04

* As of 2019, a total of 1,183 labor and human rights education sessions took place (for a total
of 70,725 people) Creating Safe Workplaces free from
• Expanded the group receiving education to teenagers and small sized establishments, Industrial Accidents
and supported training of professional instructors and development and distribution of
educational content.
* Developed and distributed four education programs, three online and offline educational
(Reduction of Deaths from Industrial Accidents) The Ministry of Employment and Labor
content
is implementing “Plans for Reducing Deaths from Industrial Accidents (established on Jan 23,
2018)” to halve deaths from industrial accidents by 2022.
Promoting the representation of non-unionized vulnerable workers' interests
• To prevent major accidents such as Icheon warehouse fire, relevant ministries jointly

established 「Plans for Fire Safety at Construction Sites」 (Jun 18, 2020).
• The government worked together with organizations representing non-unionized workers to

establish and operate consultative bodies at central and local level to better listen to voices
Key Contents of Plans for Fire Safety at Construction Sites
from people on the ground and share ideas in order to better protect the interests of non-
unionized workers.
1 Establishment of Fire Safe Construction Sites
• The consultative bodies selected agenda items that were most relevant to the participating equiring public‧private constructions to calculate adequate construction periods, Disclosing lists
R
actors and regions, and explored ways to better cooperate. of inappropriate construction companies
Reorganizing the Plan for Preventing Harm and Dangers with focus given to dangerous factors
• In order to invigorate the activities of organizations representing non-unionized vulnerable
trengthening the fire safety standards of finishing materials, etc. (abnormal flame resisting
S
workers to protect their rights and interests, the government implemented projects
performance)
supporting non-profit corporations.
Prohibiting simultaneous operation of handling flammable materials and heating materials
2 Meticulous Management and Supervision of Dangerous Operations
III. Appendix
Introducing a report system for dangerous operations, establishing a real-time positioning system
for dangerous operations at construction sites via connection with the K2B, and implementing
timely inspection and supervision
reating Big data for safety and health information available for deriving dangerous spot
C
information
ignificantly strengthening patrol via cooperation with local governments and private officers and
S
connecting with government’s inspection
62 63

3 Reinforce safety awareness of companies and executives 3 Newly establishing safety･health measures for dependent self-employed persons
and delivery workers
Improving penalty standards under the Occupational Safety and Health Act and Consulting the
improvement of sentencing guidelines with the Sentencing Guidelines Commission 4 Requiring safety · health measures for contractees of building construction
Inserting measures for economic sanctions against companies and strengthening regarding machinery · equipment such as tower cranes
responsibility of executives in the Occupational Safety and Health Act
5 Imposing responsibility of preventing accidents on CEO, franchise headquarters,
and project owners
6 Newly establishing a system for submitting the Material Safety Data Sheets(MSDS)
and a closed examination system
(Amendment to the Occupational Safety and Health Act) The wholly amended
Occupational Safety and Health Act, containing all of the institutional improvements with
respect to the three plans* announced to date, such as expanding contractor’s responsibility

and limiting contract of dangerous operation, was enforced (Jan 16, 2020). (Enhancement of COVID-19 Quarantine Management at Workplaces) The Ministry has
striven to prevent the spread of COVID-19 by establishing Response Guidelines to Prevent
* 「 Plans for Preventing Major Industrial Accidents」(Aug 17, 2017), 「Plans for Preventing Major
the Spread of COVID-19 at Workplaces, examining the compliance with the Guidelines, and
Industrial Accidents regarding Tower Cranes」(Nov 16, 2017) 「Plans for Reducing Deaths
supporting vulnerable workplaces*.
from Industrial Accidents」(‘18.1.23.)
* ▲Distributed 4.42 million face masks to delivery drivers, taxi drivers, and small businesses
such as call centers, etc.
▲Subsidized 70% of the costs for purchasing sneeze guards and non-contact thermometers, etc.
Key Contents of the Wholly Amended Act
(Expansion of Occupations covered by the Industrial Accident Compensation Insurance)

1 Prohibiting contract of dangerous operation such as plating in principle, while In terms of the Industrial Accident Compensation Insurance, the Ministry has continuously
exceptionally allowing contract of temporary · intermittent operation and operation
extended the coverage among dependent self-employed persons, visiting services workers(four
aimed at exploiting techniques of contractors(prior approval required)
occupations*, 199,000 people) and cargo truck drivers** (75,000 people) have been newly
III. Appendix
•C
ontract of operation handling hazardous materials(skin corrosivity, etc.) requires
included since July 2020.
approval
*①
Door-to-door salesmen ② Vising inspectors for rental goods ③ Visiting teachers
2 Expanding the scope of contractee’s responsibilities to ▲Contractee’s workplaces
▲Places controlled · managed as prescribed by Presidential Decree provided ·
④ Home appliances installers
designated by the contractee (21 places) ** Cargo truck drivers of ① Export and import containers ②Cement ③ Steel products ④
Dangerous materials
64 65
05

promotion of labor mobility has emerged as an important issue in FTA negotiations, and MOEL
Promoting International Labor Cooperation has made efforts to produce the best negotiation outcomes on that matter.
In addition, to guarantee basic labor rights protection in line with the international
standards, expert meetings and inter-ministerial meetings were held to analyze conflicts
between domestic laws and systems and conventions and to explore improvement measures in
International cooperation in the field of employment and labor can be broadly divided 2020, which led to a bill submitted to the National Assembly intended to promote the ratification
into the following categories: making exchanges with international organizations and of the ILO fundamental conventions (Freedom of association, Prohibition of forced labor) that
other countries and providing assistance to developing countries (ODA); dealing with FTA Korea has yet to ratify.
negotiations and implementing FTAs; supporting foreign-invested companies in Korea

and Korean companies abroad; and helping companies secure a workforce they need by
bringing in foreign workers.
2) Development cooperation
1) Cooperation with international organizations and FTA
negotiations and implementation Korea’s two main pillars of its official development assistance (ODA) are the bilateral
As the demand for international policy coordination and exchanges in the field of consultation project and the multilateral partnership program. The bilateral consultation project
employment and labor grew in the aftermath of the global employment crisis, Korea has actively consists of Policy Consultation for Developing Countries, Development of the Employment Service
taken part in international meetings, especially those organized by the G20, ILO, OECD, and APEC. Information Portal (ESIP), Capacity Building of Skill Contest, and Capacity Building of Education
The Korean government uses those international gatherings as the opportunity to present its and Training of Occupational Safety Center in Ho Chi Minh City. The multilateral partnership
best policies to the international community and pursue policy exchanges and cooperation with program includes ASEAN Partnership Program, Multilateral Financial Institution (World Bank)
other countries. Partnership Program, Korea-OECD Partnership Program, and Korea-ILO Partnership Program.
III. Appendix
• Among the bilateral consultaion projects, The policy consultation project for developing
countries was launched in 2012 for the purpose of contributing to the establishment and
MOEL is also involved in discussions on labor standards and employment issues, which
improvement of laws and systems in target developing countries by sharing Korea's policy
are conducted as part of international economic and trade negotiations, such as FTA and WTO
development experience with recipient countries. The government organizes a public-
negotiations. It cooperates with the international community to promote labor rights by including
private joint consultation team composed mainly of experts with abundant policy experience
a separate chapter on the promotion of labor rights in its FTAs with other countries. Recently, the
and shares Korea's policy development experience with developing countries by holding
66 67

seminars and workshops for their policymakers and sending experts to those countries. To rights and interests, and enhancing transparency in the sending process. In addition, the
date, the government has conducted such policy consultations for nine countries--Vietnam, government operates the point-based selection system to bring in a reasonable number of
Mongolia, Sri Lanka, Uzbekistan, the Philippines, Myanmar, Cambodia, Laos and Peru--in four foreign workers. It also makes various efforts to help foreign workers staying in Korea better
fields, such as vocational skills development, employment services and occupational safety adapt to Korean society, including providing them with tailored education and counseling
and health. From 2018 to 2020, Korea has carried out policy consultaion projects for Laos services.
(vocational skills development) and Sri Lanka·Peru (employment services).
• ASEAN Partnership Program consists of Capacity Building of ASEAN Technical and Vocational
Education and Training (TVET), Sharing of Development Experience in the Employment and
Labor Sector (ASEAN+3 HRD Forum, Korea-ASEAN Workshop on the Sharing of Employment
and Labor Policies), and Technical and Vocational Education and Training for ASEAN Mobility
Employment Permit System

(TEAM) Program in ASEAN-Korea Cooperative Fund (AKCF). ASEAN Partnership Program, a
project to share Korea’s policy development experience in TVET with ASEAN member states,
he Employment Permit System allows SMEs failing to find native Korean workers to employ
T
is conducted in various manners including holding seminars and workshops or sending
non-professional foreign workers legitimately after getting employment permits issued by the
experts to the countries. government.
• Multilateral Financial Institution (World Bank) Partnership Program aims to pursue Introduction of general foreign workers: Employment Permit System (E-9)
cooperation in the employment and labor sector with the World Bank. In October 2019, MOEL
and World Bank signed an Memorandum Of Understanding (MOU) in the Employment and
Labor Sector. Going forward, the cooperation between MOEL and World Bank will be carried
out on the basis of this MOU.
Korean language
Issuance of an
test, preparation Visa issuance & Assignment of the
employment Signing of a labor
of a job seekers' entry to Korea foreign worker
permit to the contract
roster to the workplace
employer (Employer↔
(Ministry of after employment
foreign worker)
(Sending country Justice) education
(MOEL)
3) Introduction of foreign workers to Korea ↔HRD Korea)
III. Appendix
* Foreign workers are prohibited from moving from one industry to another, but allowed to move
from one workplace to another up to three times during the first three years of employment, and up
Meanwhile, since August 2004, the government has implemented the Employment Permit
to twice during the one year and ten months after reemployment, as long as they have any reason
System (EPS) to replace the industrial trainee system, with the aim of supplying production prescribed by the law. (However, a change of workplaces for any reason attributable to the employer,
such as business suspension or shutdown, is not counted towards the total number of workplace
workers to companies with a shortage of such workers more systematically while at the same
changes.)
time protecting the domestic labor market, strengthening the protection of foreign workers'
68 69

Employment of ethnic Koreans: Working Visit System (H-2)
(Counseling Center for Foreign Workers) The Counseling Center for Foreign Workers helps resolve
foreign workers' grievances promptly via phone counseling (call center, ☎1577-0071).
(Employer education) Employers are provided with education to help transferred employees to their
Employment Issuance of a establishments stay employed for a longer term, to resolve conflict, to improve awareness on foreign
Signing of a labor Notification of
Visa issuance & education & special-case
contract commencement workers to better manage them.
entry to Korea registration as a employment
of work or
job seeker permit to the
(self-initiated employment
(Ministry of employer
job search or job
Justice) (HRD Korea,
placement) (MOEL, MOJ)
MOEL) (MOEL) (Vocational skills development training for foreign workers in employment) Foreign workers
currently in employment are provided with vocational skills development training to strengthen their
* Ethnic Koreans find work after entering Korea and can freely move from one sector to another and adaptability in the workplace and help improve corporate productivity.

from one workplace to another.
(Operation of Councils for the Protection of Foreign Workers' Rights and Interests) Every local
employment and labor office has a council for protection of foreign workers' rights and interests where
measures to resolve conflicts between foreign workers and their employees and measures to provide
better support to foreign workers are discussed.
Support for foreign workers staying in Korea * Each council is composed of members from organizations that represent workers, employers and
foreign workers.
Ethnic Koreans (H-2 working visit visa holders) and foreign workers (E-9 visa holders) who
enter Korea through the Employment Permit System are offered various services, including grievance
III. Appendix
counseling, Korean language education and education about laws on everyday life, to support their stay
in Korea.
(Support Centers for Foreign Workers) A total of nine hub centers and 35 small-area centers are
operating to provide grievance counseling, Korean language education, knowledge on basic Korean law
for everyday life, digital technology education.
70 71
01

Labor laws
(http://moel.go.kr/english)
Laws under the rule of MOEL: 40 in total
III (Legislation by MOEL) 36 laws, including ｢Labor Standard Act｣, ｢Trade Union and Labor

Relations Adjustment Act
Appendix (Legislation with other Ministries) 4 in total (2 with the Ministry of Education, 1 with the
Ministry of Gender Equality and Family, 1 with the Ministry of Trade, Industry and Energy)
* Framework Act on Qualifications · Vocational Education and Training Promotion Act(Ministry

of Education), Act on Promotion of Economic Activities of Career-interrupted Women(Ministry
of Gender Equality and Family), Act on Trade Adjustment Assistance Following the Free Trade
Agreements(Ministry of Trade, Industry and Energy)
III. Appendix
73

Area Title of Law Area Title of Law
Framework Act on Employment Policy Labor Standards Act
Act on the Employment Improvement, etc. for Construction Workers Certified Labor Affairs Consultant Act
Act on Trade Adjustment Assistance following the Free Trade Agreements Employee Retirement Benefit Security Act
Employment Insurance Act Labor Framework Act on Labor Welfare
Act on the Collection, etc. of Premiums for Employment Insurance and Standards Wage Claim Guarantee Act
Industrial Accident Compensation Insurance
Minimum Wage Act
Special Act on the Promotion of Youth Employment
Act on the Protection, etc. of Fixed-Term and Part-Time Employees
Act on Foreign Workers’ Employment, etc.
Act on the Protection, etc. of Dispatched Workers
Employment Policy Employment Security Act

Act on the Tripartite Commission for Economic and Social Development
Social Enterprise Promotion Act
Act on the Establishment of Workers Day
Act on the Promotion of the Economic Activities of Career-Break Women,
etc. Act on the Promotion of Worker Participation and Cooperation
Act on Equal Employment and Support for Work-Family Reconciliation Labor Labor Relations Development Support Act
Relations Labor Relations Commission Act
Act on Prohibition of Age Discrimination in Employment and Aged
Employment Promotion
Trade Union and Labor Relations Adjustment Act
Act on Employment Promotion and Vocational Rehabilitation for Disabled
Act on the Establishment, Operation, etc. of Public Officials Trade Unions
Persons
Act on the Establishment, Operation, etc. of Trade Unions for Teachers
Fair Hiring Procedure Act
Industrial Accident Compensation Insurance Act
Workers Vocational Skills Development Act
Occupational Occupational Safety and Health Act

Vocational Education and Training Promotion Act
Safety Act on the Prevention of Pneumoconiosis and Protection, etc. of
Skills Act on the Human Resources Development Service of Korea & Health Pneumoconiosis Workers
Development National Technical Qualification Act
III. Appendix
Korea Occupational Safety and Health Agency Act
Act on the Encouragement of Technical Skills
Framework Act on Qualifications
74 75
02

Major Statistics Women (unit: 1,000 persons)
2015 2016 2016 2018 2019
Aged 15 and older 22,018 22,205 22,205 22,484 22,618

Economically Active Population 11,426 11,583 11,583 11,893 12,097
Employed 11,022 11,168 11,168 11,450 11,660
1) Employment Trend Unemployed 404 415 415 443 437
Economically Inactive Population 10,592 10,622 10,622 10,590 10,521
Overall (unit: 1,000 persons)
Labor Force Participation Rate(%) 51.9 52.2 52.2 52.9 53.5
2015 2016 2017 2018 2019
Employment Rate(15+) 50.1 50.3 50.3 50.9 51.6
Aged 15 and older 43,239 43,606 43,931 44,182 44,504

Economically Active Population 27,153 27,418 27,748 27,895 28,186 (15-64) 55.7 56.1 56.1 57.2 57.8
Employed 26,178 26,409 26,725 26,822 27,123 Unemployment Rate(%) 3.5 3.6 3.6 3.7 3.6
Unemployed 976 1,009 1,023 1,073 1,063
Economically Inactive Population 16,086 16,187 16,183 16,287 16,318 * Source: Statistics Korea (http://kostat.go.kr)
Labor Force Participation Rate(%) 62.8 62.9 63.2 63.1 63.3

Employment Rate(15+) 60.5 60.6 60.8 60.7 60.9
(15-64) 65.9 66.1 66.6 66.6 66.8
Unemployment Rate(%) 3.6 3.7 3.7 3.8 3.8
* Source: Statistics Korea (http://kostat.go.kr) [Economically Active Population Survey] Youth (Aged 15~29) (unit: 1,000 persons)
2015 2016 2017 2018 2019
Men (unit: 1,000 persons)

Aged 15~29 9,380 9,363 9,282 9,149 9,060
2015 2016 2017 2018 2019 Economically Active Population 4,253 4,334 4,333 4,312 4,331
Aged 15 and older 21,222 21,401 21,573 21,699 21,886 Employed 3,864 3,908 3,907 3,904 3,945
Economically Active Population 15,728 15,836 15,975 16,002 16,090
Employed 15,156 15,241 15,368 15,372 15,463 Unemployed 389 426 426 408 386
III. Appendix
Unemployed 572 594 607 630 627 Economically Inactive Population 5,127 5,029 4,979 4,837 4,729
Economically Inactive Population 5,494 5,565 5,598 5,697 5,797
Labor Force Participation Rate(%) 74.1 74.0 74.1 73.7 73.5 Labor Force Participation Rate(%) 45.3 46.3 46.7 47.1 47.8
Employment Rate(15+) 71.4 71.2 71.2 70.8 70.7 Employment Rate(%) 41.2 41.7 42.1 42.7 43.5
(15-64) 75.9 75.9 76.3 75.9 75.7
Unemployment Rate(%) 3.6 3.8 3.8 3.9 3.9 Unemployment Rate(%) 9.1 9.8 9.8 9.5 8.9
* Source: Statistics Korea (http://kostat.go.kr) * Source: Statistics Korea (http://kostat.go.kr)
76 77

2) Minimum Wage (unit: won)
5) Labour Disputes (unit: In case, day)
Daily Wage Monthly Wage Year No. of Disputes No. of Illegal Disputes No. of Work Days Lost
Year Minimum Wage/Hour
(8 hours) (40-hour work week)
2015 105 4 446,852
2016 6,030 36,640 957,220
2016 120 5 2,034,751
2017 6,470 38,880 1,015,740
2017 101 3 861,783
2018 7,530 41,680 1,088,890
2018 134 4 551,773
2019 8,350 60,240 1,573,770
2019 141 0 401,845
2020 8,590 68,720 1,795,310
* Source: Ministry of Employment and Labor
* Source: Ministry of Employment and Labor (http://moel.go.kr)
3) Wage 6) Minimum Wage

(unit: won) (unit: In person, %)
Year Nominal Wage Real Wage Consumer Price Index No. of employees No. of deaths per
Year No. of the injured No. of deaths Accident rate(%)
2015 2,991 2,991 100.00 (in thousand) 10,000 people (%)
2016 3,106 3,076 100.97 2015 17,969 90,129 1,810 0.50 1.01
2017 3,207 3,116 102.93 2016 18,432 90,656 1,777 0.49 0.96
2018 3,376 3,232 104.45 2017 18,560 89,848 1,957 0.48 1.05
2019 3,490 3,329 104.85 2018 19,073 102,305 2,142 0.54 1.12
* Source: Ministry of Employment and Labor [Labor force survey at establishments], 2019 18,725 109,242 2,020 0.58 1.08
Statistics Korea[Consumer Price Survey)
1) Accident rate : (no. of injured / no. of workers) X 100
2) No. of deaths per 10,000 workers : (no. of deaths / no. of workers) X 10,000
4) Working Hours (unit: per month, in 1000 won, %)
All employees
Regular employees Temporary

Year & daily employees
Contractual hours Overtimes
III. Appendix
of work hours
2015 171.5 178.7 167.9 10.8 113.7
2016 169.4 177.1 166.4 10.7 107.2
2017 166.3 173.3 163.2 10.1 104.7
2018 163.9 171.2 161.6 9.5 98.6
2019 163.1 170.3 161.3 9.1 96.0
78 79
2020
Employment and Labor Policy in Korea
Published in August, 2020

International Cooperation Division Ministry of Employment and
Labor, Republic of Korea
National Labor Consultation Center
Domestic 1350 (ext. 5) Overseas +82-52-702-5089 (ext. 5)
http://www.moel.go.kr/english

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Employment and Labor

II. Major Employment and Labor Policies 18

I. Overview of the Ministry of Employment and Labor

II. Major Employment and Labor Policies

Employment and Labor

I. Overview of the Ministry of Employment and Labor

1948 1953 ~ 1954 1955 1963 1974

The Labor Bureau was The National The Ministry of Health

II. Major Employment and Labor Policies

The Occupational Safety The six regional offices were

I. Overview of the Ministry of Employment and Labor

The International Cooperation Bureau was created; 1996

II. Major Employment and Labor Policies

2018 2017 2013 2010

I. Overview of the Ministry of Employment and Labor

II. Major Employment and Labor Policies

• National Labor Consultation Center

I. Overview of the Ministry of Employment and Labor

• Operation of employment insurance and industrial accident compensation insurance

II. Major Employment and Labor Policies

Korea University of Technology & Education www.koreatech.ac.kr

I. Overview of the Ministry of Employment and Labor

According to Article 40 (Ministry of Employment and Labor) of the National

II. Major Employment and Labor Policies

Korea Testing Institute of Technical Qualification www.ktitq.or.kr

Korea Labor Foundation www.nosa.or.kr

I. Overview of the Ministry of Employment and Labor

II. Major Employment and Labor Policies

• Establishment of labor standards policies,including work hours and

• Management, adjustment and analysis of labor management policies,

Public • Establishment and operation of policies related to labor relations in the

I. Overview of the Ministry of Employment and Labor

II. Major Employment and Labor Policies

Major Employment inclusive nation” in which everyone prospers together.

and Labor Policies

I. Overview of the Ministry of Employment and Labor

II. Major Employment and Labor Policies

I. Overview of the Ministry of Employment and Labor

II. Major Employment and Labor Policies

I. Overview of the Ministry of Employment and Labor

II. Major Employment and Labor Policies

I. Overview of the Ministry of Employment and Labor

II. Major Employment and Labor Policies

I. Overview of the Ministry of Employment and Labor

II. Major Employment and Labor Policies

I. Overview of the Ministry of Employment and Labor

II. Major Employment and Labor Policies

I. Overview of the Ministry of Employment and Labor

II. Major Employment and Labor Policies

• I ndustry Skills Councils have been designated as institutions responsible for

I. Overview of the Ministry of Employment and Labor

II. Major Employment and Labor Policies

I. Overview of the Ministry of Employment and Labor

II. Major Employment and Labor Policies

I. Overview of the Ministry of Employment and Labor

II. Major Employment and Labor Policies

• The government conducts Smart Labor Inspection* on 400 establishments by using

I. Overview of the Ministry of Employment and Labor

• Operation of employment insurance and industrial accident compensation insurance

• Establishment of labor standards policies,including work hours and

• Management, adjustment and analysis of labor management policies,

Public • Establishment and operation of policies related to labor relations in the

• I ndustry Skills Councils have been designated as institutions responsible for

• The government conducts Smart Labor Inspection* on 400 establishments by using

• Before getting employed: Job search promotion subsidy, talent development

• After starting a business: Newly established a voucher program to support

• The government worked together with organizations representing non-unionized workers to

3) Wage 6) Minimum Wage

4) Working Hours (unit: per month, in 1000 won, %)