Direct Request (CEACR) - adopted 2024, published 113rd ILC session (2025)

Employment Service Convention, 1948 (No. 88) - Republic of Korea (Ratification: 2001)

The Committee notes the observations made by the Federation of Korean Trade Unions (FKTU) and submitted to the Office on 8 September 2023, and the Government’s reply thereto, submitted in October 2023.

Articles 1 and 3 of the Convention. Contribution of the employment service to employment promotion. The Committee notes the information provided by the Government about modification and implementation of policy and legislative measures and programs to address significant challenges in its employment and social situation. The Committee also observes the Government’s multifaceted approach, including policy reforms and increased investment in social programs to strengthen the labour safety net and to address “the blind spots in the labour market”. In this regard, the Government informs about (i) the enactment in 2020 of the “Act on Promoting Employment and Supporting Stable Living Conditions for Job Seekers” which came into force on 1 January 2021; (ii) the introduction in 2021 of a Korean unemployment assistance program, “National Employment Support System”; (iii) integration of the Employment Success Package into the National Employment Support System, offering comprehensive employment support services and income support to low-income job seekers, unemployed youth, and women with career interruptions to ensure their livelihood stability; (iv) the announcement in June 2022 of the “1st Basic Plan for National Employment Support System” which envisages expanded support and strong employment support services for employment vulnerable groups. Regarding this, the Government refers to its efforts in July 2022 to reduce support gaps by relaxing requirements for the youth (increased the bar for property requirement from 400 million to 500 million KRW) and for small business owners (temporary requirement of annual sales below 300 million KRW to permanent). The Committee requests the Government to continue to provide information on the contribution of the employment service to employment promotion, including as regards measures taken to enhance monitoring, expand services, foster partnerships, invest in digital transformation, focus on skills development, support small businesses, address long-term unemployment, promote decent work, and engage stakeholders to strengthen the labour safety net and create a more inclusive economy.

With regard to the employment promotion measures, the Committee observes that they include: (i) expansion and improvement of existing programs such as the social insurance subsidy with a focus on newly insured; (ii) expansion of the employment insurance coverage (from 2020 to 2022) to include artists and labour providers with newly established social insurance subsidy program; (iii) elimination of the restriction on the time period for self-employed individuals to subscribe on employment insurance which provides greater flexibility and support for self-employed workers; (iv) improvement of the system (2019) to allow eligible individuals before the age 65 to continue receiving unemployment benefits in case of employment after the age 65; (v) transformation of the public-employment service system (PES) into Employment and Welfare+Centres (EWCs). In addition to the latter, the Government provides statistical information related to the expansion of the service points according to which since the establishment of the first EWC in Namyangju in January 2014, a total of 102 EWCs have been operating nationwide under the Regional Employment and Labor Offices among which 30 medium-sized EWCs and 42 branch offices in December 2022. With regard to the number of persons receiving labour safety nets, the Committee notes an increase from 12.66 million in 2014 to 15.55 million in 2022 and as of February 2023, a total number of 1.28 million labour providers and 170,000 artists have been insured by the employment insurance system with the expanded coverage. The Committee also notes the FKTU's concerns about Korea's unemployment benefits system, highlighting its low-income replacement rate among OECD countries and a benefit period of only four months. The FKTU points out the stringent eligibility criteria, requiring at least 180 days of employment insurance within 18 months before unemployment, and that benefits are only provided for involuntary unemployment. In 2022, 73.1 per cent of individuals receiving unemployment benefits were at the minimum benefit level, raising concerns about the financial challenges for low-wage workers if benefits are lowered. The Government's proposed bill, approved by the Employment Insurance Committee, aims to improve the system by reducing benefits for those who repeatedly receive them, acknowledging the high proportion of temporary workers and short service periods. The FKTU suggests measures to expand coverage for vulnerable workers, including increasing the minimum and maximum benefits, reducing the required contribution period, and introducing a partial unemployment benefits system. Noting that the connection between PES and social insurance mechanisms is vital for providing comprehensive support to unemployed individuals, combining financial assistance with active labour market policies to promote re-employment and economic stability, the Committee asks the Government to continue providing updated information in this respect.

With regard to the measures with focus on disadvantaged groups of the unemployed, the Government refers to measures taken to address the specific employment service needs of vulnerable groups among unemployed persons. These measures include: (i) expansion of the coverage of the Employment Success Package Program (2009-), (ii) introduction of the Employment Success Incentives in 2017, (iii) development of shared exemplary models for tailored employment support per specific barrier of the vulnerable group in 2019, (iv) employment support services based on individual recruitment activities plan (vocational training and work experience); (v) job-seeking allowances (from 500,000 to 900,000 KRW per month for 6 months) for low-income individuals (type I, below 60 per cent of the median income). With regard to the latter, the Committee notes that there are two types of eligibility for allowances depending on income level, property and employment experience. The Committee also notes the information related to the tailored employment support service in the context of the “Job Seeker Empowerment Package”, adopted in August 2022, and the positive outcomes with a satisfaction rate of 85.1 per cent from the participants. The Committee requests the Government to continue providing information on the contribution of the expansion of the employment service to achieve the objective of employment promotion. The Committee also requests the Government to continue provide information on measures taken to address the specific employment service needs for disadvantaged groups of the unemployed.

Articles 4 and 5 of the Convention. Participation of social partners. In respect of social dialogue, the Committee also refers to its comments on the Employment Policy Convention, 1964 (No. 122). The Committee also notes the establishment in 2019 of the Specialised Committee for Employment Service (SCES) to provide deliberations specializing on key policies related to employment service. The SCES e is composed of 18 members, including two representatives of employers and two of workers, as well as one youth representative and one person, recommended by the Council of Governors of the province. The Committee notes the observation of the FKTU related to the membership of the SCES, that the representatives of employers, workers, the government, and civil society organizations should be appointed in equal numbers. In addition, the FKTU highlights that the participation of the trade unions in the Local Employment Deliberative Councils, the Committee for Employment Improvement of Domestic Workers, and the Vocational Skills Development Committee should be guaranteed. The FKTU has also made a comment that the effectiveness of discussions should be ensured through the establishment of a working committee under the Employment Policy Deliberative Council. The Committee further notes the observation of the FKTU related to the lack of discussions with (the trade unions) regarding the establishment of a social safety net, including coverage expansion based on income and the elimination of “the blind spots in the labour market”. In the context of the abovementioned FKTU’s observations, the Committee request the Government to provide its response taking into account the requirement of the Convention to develop the general policy of the employment service in consultation with representative organisations of employers and workers through the advisory committees required by the Convention for their cooperation in the organization and operation of the employment service. The Committee also requests the Government to continue providing information on the activities of the Employment Policy Council in the organization and operation of the employment service and in the development of employment service policy. The Committee further requests the Government to include information on any measures taken to improve the effectiveness of the Council’s discussions on matters covered by the Convention.

Article 9 of the Convention. Staff of the employment service. The Committee notes the information provided by the Government about the status of the employment centres’ staff, composed of public officials and non-public-official career counsellors. In this regard, the Committee observes the reference to the national legislative acts which regulates the employment, working conditions and training of the two groups. With regard, to the latter, the Employment Security Act stipulates that the Government (the head of the employment service agency) should secure the expertise of its staff to train employment service professionals. In accordance with this, the Committee notes the information that every year the Minister of Employment and Labor establishes a training plan to support employment centres’ public officials and career counsellors in completing job-related trainings. Furthermore, every year, all employees are required to establish their own self-development plans and complete training programs online and Offline. In this context, the Government informs that in 2022, among 5,150 employees at nation-wide employment centres, 10,056 employees completed the training (including those who took multiple training programs), and completion rate reached to 100 per cent.

The Committee notes the FKTU's concerns regarding the additional burden placed on the employment service by the introduction of the national employment support system in January 2021 and the implementation of employment insurance for all. The FKTU highlights that despite the worsening employment crisis due to factors like low growth and COVID-19, the capacity and quality of public employment services remain insufficient, hindering their effectiveness. The weak infrastructure supporting these services affects the provision of high-quality assistance. Additionally, the FKTU points out that those responsible for employment affairs face discrimination in wages, working conditions, and benefits due to their varying employment types—direct employment and private entrustment. Public employment service roles are often low-quality and filled by non-professional counsellors. As of 2020, the expenditure on employment services as a percentage of GDP was 0.06 per cent, less than half of the OECD average of 0.14 per cent. The Committee notes that, in its reply to the above-mentioned observations made by the FKTU, the Government highlights its commitment to secure enough workforce by increasing the number of staffs dedicated to providing employment services by 706, in consideration of the implementation of the national employment support system. The Committee requests the Government to continue providing information on the status and working conditions of job counsellors and on measures aimed at ensuring that the working conditions of employment service staff comply with the requirements of Article 9 of the Convention.

Article 11 of the Convention. Cooperation between public and private employment services. In its reply to the Committee’s previous comments, the Government informs that alongside the National Employment Support System, the private sector participates in providing customized employment support services along with income support to the unemployed aged 15 to 69 among the employment vulnerable groups. In 2022, 529 agencies participated, assisting 166,000 people. The Government also indicates that it has also taken steps to ensure the soundness of the employment placement market and protect workers through various programs operated by business associations of private employment service providers. Notably, the number of newly established employment placement agencies increased from 15,690 in 2020 to 16,627 in 2022. Noting that the report does not go in detail to provide information regarding the measures taken by the competent authority to secure an effective cooperation between the public employment service and private employment agencies, the Committee requests the Government to provide updated information in this respect with its next report.