The South Korean Government is attempting to improve the country’s employment situation by introducing a series of emergency measures.
One aim is to raise the maximum qualifying age for tax benefits given to young Koreans from 29 to 34 years old. These tax breaks, which include cuts in income and corporate taxes, are available to people who either work for small and mid-sized companies or run their own businesses.
A special presidential commission has also been set up to work on creating a social safety net. It came to the conclusion that the Government should give monthly payments to the self-employed who have been forced to close their businesses and are now looking for a job. The commission’s recommendations will be submitted to the Government, which will decide whether to implement them, according to the Korea JoonAng Daily.
Data from Statistics Korea shows that only 5,000 new jobs were added to the South Korean economy in July, plummeting from 106,000 new hires in June. The data also showed that more than 200,000 temporary and day-to-day jobs vanished last month. Many believe the terrible employment figures are linked directly to a 16.4% minimum wage hike that came into effect at the start of the year.
The situation has led the Moon government to pass supplementary budgets worth 15 trillion won (US$13.4 billion) aimed at boosting the job market.
According to a new government report, an average household earned 4.53 million won (US$4,030) per month in the April-June period, up 4.2% from the previous year. But the Yonhap News Agency said there had been a decline in the monthly average earnings of people in the bottom 20% income bracket due to a sharp fall in revenues for smaller self-employed business owners.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
OTHER ARTICLES THAT MAY INTEREST YOU
South Korea to introduce tax reform in bid to lower wealth gap
South Korean president's ratings slide on minimum wage debacle
The South Korean Government is attempting to improve the country’s employment situation by introducing a series of emergency measures.
One aim is to raise the maximum qualifying age for tax benefits given to young Koreans from 29 to 34 years old. These tax breaks, which include cuts in income and corporate taxes, are available to people who either work for small and mid-sized companies or run their own businesses.
A special presidential commission has also been set up to work on creating a social safety net. It came to the conclusion that the Government should give monthly payments to the self-employed who have been forced to close their businesses and are now looking for a job. The commission’s recommendations will be submitted to the Government, which will decide whether to implement them, according to the Korea JoonAng Daily.
Data from Statistics Korea shows that only 5,000 new jobs were added to the South Korean economy in July, plummeting from 106,000 new hires in June. The data also showed that more than 200,000 temporary and day-to-day jobs vanished last month. Many believe the terrible employment figures are linked directly to a 16.4% minimum wage hike that came into effect at the start of the year.
The situation has led the Moon government to pass supplementary budgets worth 15 trillion won (US$13.4 billion) aimed at boosting the job market.
According to a new government report, an average household earned 4.53 million won (US$4,030) per month in the April-June period, up 4.2% from the previous year. But the Yonhap News Agency said there had been a decline in the monthly average earnings of people in the bottom 20% income bracket due to a sharp fall in revenues for smaller self-employed business owners.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
OTHER ARTICLES THAT MAY INTEREST YOU
South Korea to introduce tax reform in bid to lower wealth gap
South Korean president's ratings slide on minimum wage debacle
