One in four foreign workers received unemployment benefits that amounted to more than they earned before they lost their jobs in Korea.
Out of 12,100 foreign unemployment benefit recipients last year, 3,200 (26.4 percent) took home more than their previous wages, according to the government’s data submitted to Rep. Kim Sang-hoon of the People Power Party, chairman of the National Assembly’s Planning and Finance Committee, on Oct. 4.
Among foreign workers, the number of reverse recipients who received unemployment benefits more than their wages surged to 5,700 (37.3 percent) in 2020 from 1,100 (23.9 percent) in 2016.
In 2022 alone, more than one in four, or 26.4 percent, received unemployment benefits more than their previous wages. The total amount of unemployment benefits they received amounted to 19.66 billion won. Of the unemployment benefits paid to foreign workers (76.24 billion won), 25.8 percent went to reverse recipients.
The per capita unemployment benefits paid to foreign workers increased by 104.8 percent, from 4.2 million won in 2016 to 8.6 million won in 2022. During the same period, those paid to Korean workers jumped by 85.7 percent from 4.9 million won to 9.1 million won.
“The reversal of unemployment benefits may have the side effect of discouraging the unemployed from working rather than encouraging them to find jobs,” said Kim. “It is necessary to find and fix any loopholes in the unemployment benefits system to minimize the misuse of unemployment benefits and look into equity issues between Koreans and foreigners.”