The ruling People Power Party (PPP), in collaboration with the South Korean government, is examining the potential of lowering or altogether abolishing minimum unemployment benefits, currently at 80% of the nation’s minimum wage. The PPP identified the current system, which leads to some working individuals earning less than those on unemployment benefits, as problematic. Measures under consideration include potentially reducing or eliminating unemployment benefits.

At the same time, a proposed amendment to the Employment Insurance Act is under review. The amendment aims to eliminate unemployment benefits, replace them with extended individual benefits for low-income individuals and lengthen the insured period from 180 days to 10 months. The final plan, which could include additional proposals, is still being decided, with more opinions being sought.