In 2024, the Korean government announced a series of labor policies aimed at reducing disparities in the labor market, including the resumption of the regular employment conversion support program and new parental work hour reduction initiatives. Recent media reports raised concerns about the effectiveness of the conversion support program, but the Ministry of Employment and Labor emphasized its commitment to enhancing policy effectiveness and making necessary improvements. This year, the program expands its coverage to businesses with fewer than 30 employees, strengthening job security for workers in small enterprises. New measures for parental workers and dual-income families, such as flexible work hours and later start times, have also been introduced to support work-life balance.
The regular employment conversion support program, resumed after two years, provides up to KRW 600,000 per month for one year to businesses that convert or directly hire contract, dispatched, or subcontracted workers who have worked for at least six months. The parental 10 a.m. start time subsidy is newly implemented, offering KRW 300,000 per month to small and medium-sized business owners for each employee with reduced work hours. To compensate for reduced wages, the maximum base salary for workers who cut their weekly hours by 10 is raised to KRW 2.5 million, and KRW 1.6 million for other reductions. Parental leave support grants are set at up to KRW 1.4 million per month for businesses with fewer than 30 employees, and up to KRW 1.3 million for larger businesses.
The Ministry of Employment and Labor is also strengthening the principle of equal pay for equal work and supporting subcontractor bargaining through revised labor union laws. Additional policies include the enactment of the Basic Rights Act for Workers to protect special employment and platform workers, enhanced supervision of non-regular workers, discrimination prevention, and ongoing consulting for employment structure improvement. The government plans to closely monitor policy outcomes and refine systems to ensure resources reach those in need. Flexible work arrangements, such as the 10 a.m. start and 5 p.m. finish, are now available to help parents balance childcare and work responsibilities.
Looking ahead, labor policies are expected to further expand to include small businesses and diverse employment types. Continuous monitoring and system improvements will be key to ensuring policy effectiveness and practical application. As the government strengthens support for work-life balance and reduces structural disparities, improvements in workers’ quality of life and business competitiveness are anticipated. The expansion of support for parental workers and dual-income families is likely to foster a more family-friendly labor environment.
These policies focus on addressing structural disparities in the labor market and fostering a family-friendly environment. Regular employment conversion and parental work hour reduction enhance job stability and quality of life for workers while increasing operational flexibility for businesses. From an AI perspective, data-driven analysis and tailored support will be crucial for future policy success, and detailed policy design that considers various employment types and family structures will be essential.