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Minister underscores policy efforts and cooperation with the international community to overcome the COVID-19 crisis

 

Minister Lee Jae-kap underscores policy efforts and cooperation with the international community to overcome the COVID-19 crisis

 

-attended the OECD 2nd virtual Ministerial Council Roundtable- 

 

- Jul, 8(Wed). 2020 - 

 

  □  Lee Jae-kap, minister of employment and labor, attended the OECD 2nd virtual Ministerial Council Roundtable* held on July 7th (Tues) at 7 pm.

    ㅇ The meeting was held on the occasion of the launch of the new OECD Employment Outlook 2020, that compares and analyzes the status of the labor market and policies of OECD member states, to discuss policy measures to overcome the COVID-19 crisis.

     *    The OECD first virtual Ministerial Council Roundtable was held for Economic Ministers on June 10 (Wed) (attended by Deputy Prime Minister and Minister of Economy and Finance, Hong Nam-ki)

    ㅇ Following a welcoming speech by OECD Secretary General Ángel Gurría, a keynote speech by Spanish Minister of Social Security José Luis Escrivá, and the announcement of the OECD’s employment outlook in 2020, the meeting addressed sharing experiences to deal with the employment crisis among OECD member countries.

 

  □  The impact of the COVID-19 crisis on the OECD labor market was analyzed to be greater and more direct than that of the 2008 Global Financial Crisis.

    ㅇ Minister Lee emphasized solidarity and cooperation with the international community, stressing policy response efforts to restore the labor market and prepare for post-COVID way of life.

  □  Minister Lee introduced Korea’s labor and employment policy efforts to protect jobs and the vulnerable amidst the COVID-19 crisis in four ways.

   ❶ First, from early on, the Korean government significantly strengthened* its Employment Retention Subsidies program for employers and employees to protect jobs in response to the spread of COVID-19.

       * The Budget for Employment Retention Subsidies was increased from 35.1 billion won to 2163.2 billion won

   ❷ Second, Korea provides income support for the vulnerable groups who are not covered by the Employment Insurance and hit hardest by COVID-19 through a variety of programs worth a budget of 1.7 trillion won, including Emergency Employment Stability Subsidy program.

   ❸ Third, Korea strengthened support for sectors hit hardest by COVID-19* (such as travel, tourism, airline industries).

       *  travel, tourism and lodging, tourist transportation, performance, aircraft ground handling, duty free and travel retail, exhibition and international convention, and airport bus sectors

   ❹ Fourth, the government set up a plan to directly create 550,000 jobs for the vulnerable groups in the job market to brace for worsening job market.

  □  The Minister also shared “Post-COVID” policy that is being proactively carried out by the Korean government, designed to prepare the country for a major economic and societal shift towards contactless and digitalization trends, spurred by the COVID-19 pandemic.

    ㅇ He stated that the Korean government plans to make large investments in the digital and green industries, and to focus on talent development, vocational training, and job creation in digital and new technology sectors.

    ㅇ Minister Lee added that to ensure that at least the minimum social protection is provided to all workers, the Korean government is making efforts to gradually expand the coverage of Employment Insurance, and to implement an unemployment assistance program (National Employment Support program) from next year to provide income and job-seeking support to the vulnerable.

  □  At this meeting, OECD labor and employment ministers shared the view that broad and comprehensive policy responses along with international cooperation are essential to fight against COVID-19 and overcome the current crisis.

    ㅇ The discussions from this meeting will serve as an important reference material for the 2020 Ministerial Council Meeting (MCM) which will take place at the end of October.

 

Last Modifide Date   :   Wed December 2, 2020
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