Government to Pay Up to 21 Million Won per Worker to Homeplus Employees Affected by Unpaid Wages

[Financial News] The government will provide wage arrears compensation of up to 21 million won per worker to employees affected by unpaid wages at Homeplus. It also plans to offer low-interest livelihood loans of up to 10 million won per person, at an annual rate of 1.5%, within the amount of unpaid wages.
Lee Hyoung-il, first vice minister of the Ministry of Economy and Finance, held a task force meeting on Homeplus-related issues at Government Complex Seoul on the 3rd. The meeting reviewed the impact of the collapse of Homeplus's rehabilitation proceedings and discussed support measures for Homeplus workers and partner companies.
The government plans to respond with a focus on protecting workers and small partner companies in order to minimize the impact of Homeplus's rehabilitation case being closed on the broader economy and public livelihoods.
Accordingly, it will actively support workers' livelihood stability. Workers affected by unpaid wages will receive wage arrears compensation of up to 21 million won per person, and low-interest livelihood loans of up to 10 million won per person will be offered at an annual rate of 1.5% within the amount of unpaid wages.
For low-income workers who are currently employed and earn no more than 2.68 million won a month for a three-person household, or 50% of median income, the government will also provide stronger support through livelihood stability loans of up to 20 million won at an annual rate of 1.5%.
Workers who lose their jobs because of store closures or unpaid wages can receive unemployment benefits equal to 60% of their average monthly wage over the three months before separation. Those seeking new jobs can also receive customized employment support services, including programs to strengthen job-search skills.
If they do not meet the requirements for unemployment benefits, they can receive help in drawing up an employment activity plan through the National Employment Support System. Low-income job seekers will also receive job-seeking promotion allowances of 600,000 to 1 million won per month to help them focus on finding work. In addition, workers who take part in job training supported by the labor ministry after losing their jobs can receive living-expense loans for vocational training.
For small partner companies that rely heavily on Homeplus as a major client, the government will provide emergency liquidity worth a total of 440 billion won, including 90 billion won in emergency management stabilization funds from the Small Enterprise and Market Service and KOSME, as well as 350 billion won in special guarantees from KODIT and KOTEC.
In particular, support for small businesses will be strengthened by raising the loan limit from 70 million won to 100 million won and cutting the interest rate by 0.5 percentage point. For small and medium-sized enterprises, the government plans to broaden eligibility by making an exception to the size requirement for management difficulties under the emergency management stabilization fund program, so that more companies can receive support.
For companies that have already received repayment deferrals or maturity extensions from banks, the government will seek additional deferrals and extensions with the cooperation of the banking sector. Partner companies that want to shut down can apply for one-stop closure support through the Hope Return Package, including store demolition costs of up to 6 million won and legal advice.
They can also receive job-support services such as a relocation encouragement allowance of up to 1 million won and a National Employment Support System-linked allowance of up to 1.2 million won. In addition, they can receive support for restarting a business, including management diagnosis and commercialization training.
The government said it will hold weekly task force meetings with relevant agencies to closely monitor damage to workers and partner companies, as well as the progress of support measures, and will do its utmost to ensure that the measures are implemented smoothly on the ground. It added that it will actively consider additional support if needed and will also push ahead with measures to minimize the impact of store closures on local economies and strengthen the competitiveness of the distribution industry as a whole.

syj@fnnews.com Seo Young-joon Reporter