Editorial: 42% of Job Allowance Recipients Were Still Unemployed, Is the Program Really a Stepping Stone?

South Korea’s National Employment Support Program spent more than 1 trillion won last year, yet 42% of its 310,000 participants did not find jobs. The figures have prompted criticism that a program designed to help vulnerable people into work is becoming a short-term income support measure instead.

The scheme functions as a Korean form of unemployment assistance for young people and low-income jobseekers who cannot receive unemployment benefits. Participants receive allowances based on age, income and other eligibility conditions.

The editorial notes that 90% of last year’s spending went to job-search promotion allowances. Eligible participants can receive 600,000 won a month for up to six months, while those with dependent family members can receive as much as 6 million won.

According to the Ministry of Employment and Labor, the employment rate reached 68% in the program’s first year, 2021. It has not exceeded 60% in any year since then. The editorial questions whether the scheme is delivering its stated goal of improving employment among vulnerable groups.