570,000 gig workers receive employment insurance support but no pension subsidy

Lawmaker Kim Yun calls for pan-government integrated roadmap

[Yonhap]
[Yonhap]

Government programs that subsidize national pension premiums for vulnerable workers show disparities of more than threefold in both the duration and amount of support depending on a subscriber's occupation, a new analysis has found.

Critics say the fragmented structure — with each program run under a different ministry and separate budget account — has undermined equity across the system, and that workers in special-type employment who receive employment insurance support are entirely excluded from pension subsidies.

Data submitted to the office of Democratic Party of Korea lawmaker Kim Yun, a member of the National Assembly's Health and Welfare Committee, by the National Pension Service and the Ministry of Employment and Labor showed Tuesday that conditions and benefits of major pension subsidy programs aimed at closing coverage gaps differ sharply.

Support gaps reach 3.4-fold across occupations as ministries operate in silos

The disparity in how long workers can receive support is particularly striking.

Farmers and fishers who meet the eligibility criteria can receive subsidies on an effectively open-ended basis — until Dec. 31, 2031, under a sunset provision in the supplementary clauses of the National Pension Act.

By contrast, the Durunuri program for workers at small businesses and support for domestic workers are capped at 36 months, while artists — a precarious occupational group with freelance-like employment — are limited to just 12 months.

The imbalance in subsidy amounts is equally stark.

Based on 2025 figures, the average monthly subsidy per person was 39,489 won ($29) for artists, 44,651 won for farmers and fishers, 67,030 won for domestic workers, and 132,725 won for Durunuri recipients. The gap between Durunuri and artist beneficiaries is 3.4 times.

There is also a significant gap between the maximum support period written into each program and what subscribers actually receive.

Under Durunuri, support is available for up to 36 months, but the actual average payment period per person was limited to 6.2 months. Domestic workers fared somewhat better but still fell short, averaging 12.92 months despite the same 36-month ceiling. Employment instability and frequent job changes prevent workers from fully using the benefits the programs were designed to provide.

Much of this disparity stems from each subsidy program having been introduced as a standalone welfare initiative under a separate ministry.

Support for farmers and fishers is funded through the Ministry of Agriculture, Food and Rural Affairs and the Ministry of Oceans and Fisheries via a special account for rural and fishing community structural improvement. Domestic worker and Durunuri support falls under the Ministry of Employment and Labor's general account, while artists' subsidies are financed entirely through national grants from the Ministry of Culture, Sports and Tourism.

"Because the supervising ministries and funding sources are fragmented, even the unit subsidy rates and performance indicators lack consistency," Kim said.

570,000 gig workers left out of pension coverage: 'Integrated management system urgently needed'

On top of these disparities, workers in special-type employment and other non-traditional labor arrangements have been left in a pension coverage blind spot due to the siloed structure of social insurance programs.

The Ministry of Employment and Labor began subsidizing employment insurance premiums under the Durunuri program for such workers — including delivery drivers, insurance agents and private tutors — in July 2021. By 2025, the program had extended support to 574,435 people, disbursing a total of 20.5 billion won.

Yet despite falling under the same Durunuri framework, these workers are entirely excluded from the program's national pension subsidies, leaving them with no pension support whatsoever.

Among Koreans between the ages of 18 and 59, the narrowly defined pension blind spot — those granted premium exemptions or in long-term arrears — stands at 3.35 million people. When those formally excluded from coverage, such as non-earning spouses, are included, the broader figure approaches 10 million.

The government has introduced measures including expanded premium support for low-income self-employed subscribers, but entrenched silos and imbalances among existing occupation-based subsidy programs remain a persistent obstacle to closing coverage gaps.

"The goal of national pension premium support should not be how much was disbursed by occupational category, but whether vulnerable subscribers are actually able to extend their coverage period and receive a pension in retirement," Kim said. "The government must go beyond managing program-by-program disbursement figures, and related ministries must work together to draw up a pan-government integrated roadmap."


thlee@heraldcorp.com