The social insurance system in Korea has consistently been developd in a direction to reducing the class of not being benefited. Currently the government implements so-called “Durunuri social insurance” (supporting financially for the low-income w...
The social insurance system in Korea has consistently been developd in a direction to reducing the class of not being benefited. Currently the government implements so-called “Durunuri social insurance” (supporting financially for the low-income workplace in a way of giving at most 50% (both national pension and unemployment insurance) contributions). Hereby we examined the impact of Durunuri social insurance through survey data collected mainly among micro-firms` low-income workers. Our main findings are as follows. Firstly, Durunuri social insurance does not meet the government expectation because as for low-income workplace, its rate joining newly is still lower than expected. Secondly, in order to solve this problem the government should additionally introduce the financial supports such as corporate tax benefit for employment extension and income tax benefit for long-term service employees, Andalso, it is surveyed that the current Durunuri system need to expand to whole-range social insurance. As we image, the above points are limited by government budget but should be gradually enacted for boosting the workplace welfare equity between low-income and high-income employee.