Gov't eyes 5.4 tln won to stabilize job market in 2009

SEOUL, Dec. 24 (Yonhap) -- The government said on Wednesday it plans to inject
more than 5.4 trillion won (US$4.06 billion) into the nation's job market next
year as concerns grow over a prolonged slump in overall businesses and employment
figures.
Officials also said they plan to revise a controversial law requiring companies
to convert irregular workers into regular employees after two years of
employment.
In a report presented to President Lee Myung-bak, the Ministry of Labor said it
has earmarked 5.45 trillion won in its budget for next year to help the
unemployed find new jobs and facilitate vocational training.
South Korea's job creation slumped to a 5-year low in November as more companies
are limiting additional hiring amid a global economic downswing that is weighing
down on demand for South Korean exports.
The additional funding is expected to go towards training some 152,000 job
seekers next year, up from the 99,000 that received help so far this year, and
creating 15,000 new jobs in the social services sector to assist mostly elderly
and working mothers.
The ministry will also push for legislative action to extend the temporary
employment period from three to four years before a company is obliged to convert
temporary workers to regular employees. It did not, however, give a specific
timetable on the plan.
Under existing labor rules, a company must convert an irregular worker's status
to that of a regular employee after employing them for two years.
Because it is legally difficult to fire a regular employee in South Korea, the
system has resulted in businesses letting go of workers before they reach two
years of employment. The practice has been criticized for fueling unemployment
despite its original intent to prompt businesses to convert more irregular
workers to regular employees.
odissy@yna.co.kr
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