Korea to spend W11.8tr on job creation next year

The government plans to increase its support for small and medium enterprises to create jobs next year including 37,000 part-time positions, the Ministry of Employment and Labor said Sunday.

The government has set aside about 11.8 trillion won ($11 billion) of its proposed 357.7 trillion won budget for next year to help create jobs as part of the Park Geun-hye administration’s goal of raising the employment rate to 70 percent by 2017 from the current 64.2 percent.

Spending for job provision will increase by 7.7 percent from this year, the ministry said.

Under the plan, the government will pay all expenses for social insurance fees for two years to companies with fewer than 300 employees by newly establishing a special 10.1 billion won budget. Wage subsidies will also increase from 600,000 won to 800,000 won per worker.

Additional support for wage and facility investment worth up to 200 million won will be offered to each company that shortens its daily work shifts to create more jobs.

Government officials said it will also increase financial support for women who seek to reenter the workforce, from the current 657 billion won to 698.2 billion won. Paid maternity leave, child care subsidies and workplace nursery assistance are included in the program.

By Suk Gee-hyun (monicasuk@heraldcorp.com)