<![CDATA[Korea Labor Institute - Labor Welfare & Employment]]> <![CDATA[ (Working Paper 2017-17/Employment and Labor Policies in Transition: Social Policy) Policy Tasks for Improving Occupational Safety and the Industrial Accident Compensation Insurance Scheme ]]> - Charnim Park and Seung-Yeol Yee (Senior Research Fellow, KLI)]]> <![CDATA[ (Working Paper 2017-09/Employment and Labor Policies in Transition: Social Policy) Recommendations to Improve Employment Services ]]> - Hyeonjong Kil (Research Fellow, KLI)]]> <![CDATA[ (Working Paper 2017-10/Employment and Labor Policies in Transition: Employment) Reducing Actual Working Hours for Work-Life Balance ]]> - Joyup Ahn (Senior Research Fellow, KLI)]]> <![CDATA[ (Working Paper 2017-05) Income Inequality: Current Status and Countermeasures ]]>
- Minki Hong (Research Fellow, KLI)]]>
<![CDATA[ (Working Paper 2017-04/Employment and Labor Policies in Transition: Social Policy) Overview: Changes in the Labor Market and Social Policy Responses ]]>
- Jiyeun Chang (Senior Research Fellow, KLI)]]>
<![CDATA[ (Working Paper 2017-06) How to Introduce the Unemployment Assistance Scheme ]]>
- Byung-Hee Lee (Senior Research Fellow, KLI)]]>
<![CDATA[ Changing Trends in the Youth Unemployment Crisis: 2004-2011 ]]> Changing Trends in the Youth Unemployment Crisis: 2004–2011
(Jae-ho Keum, Senior Research Fellow, Korea Labor Institute)]]>
<![CDATA[ Working Conditions in Culture and the Arts: Theater ]]> (Charnim Park, Research Fellow, Korea Labor Institute)]]> <![CDATA[ Social Security for the Self-employed: With a Focus on the European Countries ]]> (Charnim Park, Research Fellow, Korea Labor Institute)]]> <![CDATA[ The Workers’ Medical and Vocational Rehabilitation System of Social Insurance in Korea ]]> ※ Senior Research Fellow, Korea Labor Institute


INTRODUCTION

National Competitiveness Enhancement and a Healthy Skilled Labor Force

As a result of Korea’s low birthrate and rapidly aging population, the country’s total population is expected to decrease by the year 2020, and its working-age population (those 15-64 years of age) is expected to decrease by 2017 (see Table 1). The growth rate of the working-age population is expected to drop drastically beginning in 2009 to a meager 0.27% in 2018 (see Figure 1). The population growth for the 15-64 age group will decrease even more rapidly; as a result, absolute population will decrease by around 2017 (Keum, 2008, p. 12). Such a decrease in the work-aging population will reduce corporate productivity and national competitiveness. Therefore, it is important to prevent diseases or industrial accidents in order to maintain and preserve a healthy labor force and to increase national competitiveness. ]]>
<![CDATA[ Tasks for Creating and Fostering Social Enterprises ]]> ※ Charnim Park , Research Fellow, Korea Labor Institute

Ⅰ. Development of Social Enterprises The economic crisis of the late 1990s and the subsequent mass unemployment triggered a dialogue concerning social enterprise in Korea. The European concept of social employment and social enterprise was introduced, and numerous measures to overcome the mass unemployment situation were discussed and reviewed. These ideas determined the characteristics of jobs provided through the public work program, which paid cash to the unemployed in the low-income group as a form of emergency relief. These ideas also impacted the contents and organization of the self-support program. After the early 2000s, discussions on social employment and social enterprises expanded in scope to changes in the industrial structure and job creation. At that time, Korea had already overcome the economic crisis to a certain extent and needed to prepare for future increases in the demand for social services. Social employment and social enterprises provide support needed by the local community by employing its residents within the community. From this point in time, social employment and social enterprises were discussed from the perspective of job creation and changing the industrial structure. Social employment and social enterprises became a major labor policy issue, leading the Ministry of Labor to start a social employment program in 2003. The social employment program ultimately aims to develop social enterprises into self-supporting companies, in other words, to enable stable job creation in social services. In reality, the result was not in accordance with the original purpose. The social employment program in particular was criticized for its financial dependence on the government. Because the government provided 100% of the wages for the newly employed through the social employment program, it was structurally difficult to maintain the program without government money. As a result, the Korean government changed policy focus from social employment to social enterprise. In January 2007, the government enacted the Social Enterprise Promotion Act and related enforcement decrees and rules. According to the act, the government first certified 36 companies as social enterprises in October 2007, and the number of certified companies rose to 84 in May 2008. The Korean government plans to foster 1,000 social enterprises by 2012. This process set the stage for Korean social enterprises. First, NGO groups and researchers introduced the dialogue concerning social enterprises, and the government has set quantitative goals and driven the execution process. Second, there are two government ministries regulating the institutions and businesses of social enterprises. Although most social enterprises concentrate on social services managed by the Ministry of Health, Welfare and Family, it is the Ministry of Labor that initiated, managed, and financially supported social enterprises. Third, jobs could be created as a result of the development of social enterprises within communities, and this has become the main goal for fostering social enterprises. Job creation became the starting point for discussions on the development of Korean social enterprises ]]>
<![CDATA[ Private Employment Services (Search Firms, Free Job Placement Agencies, Overseas Job Placement Agencies) in Korea ]]>
* Sung-teak Kim, Senior Research Fellow, stkim@kli.re.kr


Ⅰ. Introduction

As a result of the rapid changes taking place in the world economy, such as globalization, the dramatic growth of the information technology (IT) industry, post-industrialization, and the 1997 Asian financial crisis, Koreas labor market has undergone a fundamental transformation from a structure of low unemployment, full employment and excess demand to one of structural unemployment, underemployment and excess supply. These recent circumstances have raised the problems of structural unemployment and unbalance in the supply & demand of human resources, consequently enhancing the importance of a job stabilizing function that minimizes the job searching or recruiting period, connects the disadvantaged or the long-term unemployed people with job positions, and discovers and provides the necessary vocational training. Additionally, since private employment agencies are able to offer differentiated and diverse job placement services suitable to the rapidly changing labor market environment, the development of these private employment services is emerging as a vital factor in striking an efficient balance in labor supply & demand and maximizing the effect of the job stabilizing function.

In order to promote private-sector employment services, the Korean government has drawn up measures to advance employment services and has been actively implementing them since 2006. In the process, policies were formulated on fee-charging job placement agencies, vocational information agencies and temporary work agencies after conducting analyses on basic research data. On the other hand, however, very little exists in the form of basic analysis for indicating problems in or finding ways to promote free job placement agencies, search firms (headhunting agencies), or overseas job placement agencies. This study aims to identify the current situations and problems of overseas fee-charging or non-charging job placement agencies, domestic free job placement agencies, and search firms, sectors on which hardly any research has been carried out so far. The study also explores the means to promote the functions performed by these businesses.

This study researches the status quo of each type of employment service agencies through fact-finding surveys, identifies their characteristics, diagnoses the problems in each sector, and seeks the means to resolve these challenges. ]]>
<![CDATA[ Development of Social Insurance in Korea and the Role of Trade Union ]]>
* Dr. Habil. Jo-Duk Yoon (Director, Advanced Labor-Management Program, Korea Labor Institute, yoonjd@kli.re.kr)

1. Development of the Social Insurance and Social Welfare System in Korea

Transitions in Korea’s welfare system including social insurance programs, the basis of social policy, are characterized by the introduction and expansion of new welfare systems during the economic boom. “Two of the most significant changes were made in the early 1960s when the economic development plan was in its initial phase and in the late 1980s when the welfare system was in its introduction and expansion phase. In the meantime, the medical security system, which continues to have the biggest impact, was introduced and implemented in the mid to late 1970s and the introduction of social insurance was completed in the mid to late 1990s. This period also witnessed the growing importance of private welfare and the influence of the economic and political situation on social welfare marking another transition in the history of welfare system.” (Soon-il Bark, 1997, p.49)
In addition to the introduction and expansion of the welfare system in relation to economic growth, it would be meaningful to analyze the welfare system in relation to political situations. Various social insurance acts including the Industrial Accident Compensation Insurance Act were legislated in the early 1960s during the military regime that seized power through a military coup on May 16th, 1961. The military regime that lacked legitimacy pursued establishing a welfare state by laying the foundation of a social security system as one of its policy agendas and in 1962 formed the Social Security Advisory Committee to seek legislation to expand the social security system by conducting research on the social security model that could be applied to the Korean society. The late 1970s were the times of uprisings of college students, intellectuals and labor class against the authoritarian regime and this led to the Declaration of Democratic Reforms on June 29th, 1987 spreading democracy to all sectors of the society during the mid to late 1980s.
shows related Acts and Legislations regarding the welfare system including social insurance in chronological order.
Among social insurance, the Industrial Accident Compensation Insurance Act was the first Act introduced and enforced in 1963. The National Pension Act was enacted in 1973 but was only later enforced for the general public in 1988. In 1976, employees were first provided with Medical Insurance and then the Employment Insurance System was enacted in 1993 and later enforced in 1995. Long-term Care Insurance for the Elderly is planned to be enforced from 2008.
In order to protect workers, the Labor Standard Act that stipulates minimum working condition was enacted in 1953 and a Minimum Wage System was put in place in 1988. In order to protect the livelihood of the low-income class, the Protection of Minimum Living Standards Act was enacted in 1961 and the plan for protecting 100% of the minimum cost of living was devised in the late 1990’s.
To protect the welfare of vulnerable classes including children, juveniles, the disabled and the elderly, the Child Welfare Act was enacted in 1961 followed by the Welfare of the Aged Act, the Welfare Act for Handicapped of Mind and Body and the Mother and Fatherless Child Welfare Act which were all enacted in 1981. And finally, the Infant Care Act and Framework Act on Juveniles were enacted in 1991. Also, the Employment Promotion of Disabled Persons Act, the Act on Promotion and Guarantee of Access for the Disabled to Facilities and Information, and the Employment Promotion and Vocational Rehabilitation of Disabled Persons Act were enacted and enforced in 1990, 1997 and 2001 respectively.]]> <![CDATA[ The Functions of Employment Insurance and Industrial Accident Compensation Insurance as a Social Safety Net ]]>
Ⅰ. Introduction

Industrial Accident Compensation Insurance (IACI), implemented in July 1964, became Koreas first social insurance system. The IACI initially covered workplaces with 500 or more regular employees in the mining and manufacturing industries to which the Labor Standards Acts applied, but later smaller workplaces and workplaces in other industries also become subject to the IACI, and ever since July 2000, all workplaces with one or more regular employees aside from the few exceptions have been included in the social safety net, the IACI. From 2000, SME owners, who are not wage workers but participate in labor similar to wage workers, have also been able to subscribe to the IACI, and from 2005, the self-employed operating passenger and freight transportation businesses have been recognized as SME owners, enabling them to benefit from the IACI. The Council of Ministers decided on May 29, 2007 that the bill for the revised Industrial Accident Compensation Insurance Act stipulate in the Enforcement Decree that the IACI cover the self-employed who do not employ others, and enable the so-called "special employment workers" such as golf caddies to subscribe to the IACI from July 2008.
Employment Insurance (EI) was introduced in July 1995 for workplaces (unemployment benefits) with 30 or more regular employees. At the time, the EI covered workplaces with 70 or more employees in businesses in case of the Employment Stability Program and the Job Skill Improvement Program. Although, the EI started 31 years after the IACI, the EI covered all workplaces before the IACI, covering all workplaces with one or more regular employees since October 1998.
January 1, 2004 proved to be another turning point for the EI. The EI started to cover day laborers, new employees aged 60 or older, regular workers, laborers participating in public work conducted by the central and local government, the crew on coastal fishing vessels, and some foreign laborers. With the revision of the Enforcement Decree of the Employment Insurance Act in December 2005, micro enterprise owners (business owners with less than five employees) who wish to subscribe to the EI have been able to subscribe upon payment of insurance premiums since 2006. Therefore, special employment workers with a Certificate for Business Registration are also able to subscribe to the EI, for they are recognized as micro enterprise owners.
As can be seen, Employment Insurance and Industrial Accident Compensation Insurance are operated as a social safety net providing wage workers protection against the risks of unemployment and industrial accidents, but is undergoing external expansions moving away from the scope of wage workers to include SME owners and micro enterprise owners under its protection.
This paper seeks to objectively assess the current role of the EI and the IACI, which are expanding the protection provided as a social safety net in the labor market, and review whether the two main insurances are true to their goals, and if not, diagnose the reasons and review the direction for improvement. Yet, the discussion will be limited to the coverage of the EI and the IACI along with the unemployment benefits, for the Employment Stability Program and the Job Skill Improvement Program, which are closely related to the Employment Insurance System, need to be dealt with as a separate subject. ]]>
<![CDATA[ Retirement Satisfaction and Life Satisfaction of Retirees ]]>
Ⅰ. Introduction
The rapid aging of the population has brought consequences at different levels in Korea. Socially, the proportion of the old continues to rise; individually, the old-age period becomes longer, requiring a new approach to that particular period in ones life cycle. It was generally held that old age, accompanied by declining physical functions and deteriorating health, is a period of passivity, leaving one only to look back and tidy up the last strings of ones life. But there has been a growing call to take a more active view toward the old-age, as a period to start a second life. To determine the quality of life at old age requires not only indicators on the objective living environment, but also on the subjective perceptions that one has in such living environment. Any human being would desire to live a happy life, and to fulfill that desire necessitates both physical and mental/psychological elements. One good window into the subjective dimension of the quality of life is "life satisfaction." Researchers of quality of life acknowledge that the physical elements that make up a persons living environment are an important criteria for ensuring a higher quality of life. But they assert that there is another, closely related dimension to quality of life, which is subjective perceptions of ones level of happiness or sense of value, and that such perceptions can be measured through life satisfaction indicators. In this context, this study aims to take a descriptive look into life satisfaction of retirees, using the data collected through the 1st basic survey of the Korean Longitudinal Study on Ageing (KLoSA). Their social/demographic characteristics and retirement satisfaction are used as main components. The reason why retirees have been selected as the subject of study on old-age life satisfaction is that retirement from the labor market is generally regarded as the start of old-age period. This study is structured as follows. First, in the quality of life study, the meaning of "quality of life" is investigated. The 1st KLoSA basic study dataset, the source of this study, is briefly introduced. Last, this dataset will be used to take a deeper look into the differences in life satisfaction by socio-demographic factors. ]]>
<![CDATA[ Industrial Health and Safety and Worker Participation in Korea : Current Status and Issues ]]> <![CDATA[ Employment Insurance Fund- Policy Tasks and Direction for Rational Operation ]]> In the context of discussing the EIS governance structure, it is necessary to analyze the EIS decision-making process of the Ministry of Labor, which will require a look into the following organizations: first, the ordinary decision-making process of the Minister of Labor and his EIS-related departments; second, the roles of Employment Insurance Evaluation Committee and other advisory committees; third, the extent of involvement and roles of labor and management; and fourth, the structure of the EIS fund and the premium-setting process. But merely focusing on the administrative dimension will lead one to overlook the fundamental causes that gave rise to governance structure problems, particularly in relation to the EIS. In this context, this paper aims to discuss the following: the main beneficiary group (among the different labor market participants) of the current implicit governance structure, the initiatives and funding mechanism necessary to respond to future changes in the labor market, the type of inflexibility in the premium-setting process caused by lack of well-defined a governance structure, and how to further improve the EIS. This type of discussion, instead of focusing only on the formal framework of the EIS, will be more helpful toward building the right governance structure of what is the foundation of Koreas labor market policies. It also means that taking the current implicit structure as the foregone conclusion will be ill-advised.
This paper will start out by pointing out the following shortcomings of the EIS:
- The main beneficiary out of all the different players in the labor market is the wage-earning group, a fact that has resulted in under-investment that does not correspond to the status of the EIS as the foundation of the nations employment policies.
- Its rate adjustment mechanism is too inflexible for the EIS to perform its role as the economic stabilizer.
- Payroll tax, which is labor cost in addition to wage, will rise dramatically, possibly distorting the labor market.
Following the observation, it will be argued that the EIS should move away from the "insurance" mindset (i.e., the policy attitude (implicit governance structure) that believes beneficiaries should be limited to those listed as insured), introduce a flexible premium rate adjustment mechanism, and prepare for possible drastic rise in payroll taxes by changing the funding source to value-added tax. In addition to above, other recommendations will be offered based on the projected outlook on the labor market: preparation for diversification in employment types, adoption of unemployment assistance program and performance-based rating. ]]>
<![CDATA[ Analysis of job retention of employees injured in industrial accidents ]]> <![CDATA[ Assessment of IACI ]]> <![CDATA[ Social effects of the employment of foreign labour ]]> <![CDATA[ Korean Severance Pay Reform : For Old-age Income Security or Coverage Expansion? ]]> <![CDATA[ Reform Options for Korean Retirement Allowance System ]]> <![CDATA[ Social Protection Aginst Unemployment ]]> <![CDATA[ Mismatch and Job Satisfaction of Korean Workers ]]> <![CDATA[ Proposed Policy Measures for the Protection of Atypical Workers in Korea :Comparison with the Legal Framework Germany ]]> <![CDATA[ A Reform Proposal for Korean Pension System : Coordinated Development of the Public-Private Pensions ]]> <![CDATA[ Reform Options for Korean Retirement Allowance System ]]> <![CDATA[ Expanding the coverage of Koreas unemployment insurance ]]> <![CDATA[ Assessing the coverage and effectiveness of the wage claim guarantee system in Korea ]]> <![CDATA[ Assessing the Role of Korean Employment Insurance and Work Injury Insurance as a Social Safety Net ]]> <![CDATA[ Industrial Accident Compensation Insurance in Korea ]]> <![CDATA[ Investment Scheme and Policy for Industrial Accident Prevention in Korean Industrial Accident Compensation Insurance ]]> <![CDATA[ Employment insurance and work injury insurance as a social safety net ]]> <![CDATA[ A discussion on the expansion of industrial accident compensation insurance coverage to workers of special employment ]]> <![CDATA[ Trends and Differentials in School Transitions in Korea and Japan ]]> <![CDATA[ Retirement Income Systems in East Asia ]]> <![CDATA[ Is levy-grant scheme for employer-provided training effective? : The experience of Korean employment insurance sytem ]]> <![CDATA[ Industrial Accidents, Occupational Diseases, Medical Care and Rehabilitation Programs in Korea ]]> <![CDATA[ Reasons for Retirement and Sources of Retirement Income ]]> <![CDATA[ Impact of the Reduction in Statutory Working Hours ]]> <![CDATA[ Public Employment Service in Korea : its Past, Present and Future ]]>