Foreigners receiving unemployment benefits surge by 21% in two years

Unemployment benefits paid to foreign workers in Korea have increased by more than 20% for the past two years, with repeated claims also rising sharply. The number of foreigners who have received unemployment benefits more than twice for the past five years has jumped by 43%.

According to data submitted by the Ministry of Employment and Labor to Rep. Kim Wi-sang, a People Power Party member of the National Assembly’s Environment and Labor Committee on Wednesday, the total unemployment benefits received by foreigners last year amounted to 92 billion won, marking an increase of 15.8 billion won (20.7%) compared to 76.2 billion won in 2022. The number of foreign recipients has steadily risen from 12,107 in 2022 to 12,643 in 2023 and 14,234 in 2024.

Among the foreign beneficiaries, Chinese nationals accounted for the largest share, receiving 76.2% of the total amount. A total of 152,276 Chinese workers contributed 69.3 billion won in employment insurance premiums, while 10,873 individuals received 71.2 billion won in unemployment benefits. The number of foreigners who repeatedly claimed benefits has also increased. The number of foreigners who received unemployment benefits more than twice in the past five years rose from 1,603 people (9.6 billion won) in 2020 to 2,295 people (13.6 billion won) in 2024. Additionally, 26 foreigners received unemployment benefits more than five times in the past five years. The trend is also evident among domestic subscribers, with repeated claims increasing. The number of domestic subscribers who received unemployment benefits more than three times in the past five years rose from 86,000 in 2019 to 102,000 from January to November 2023.

Meanwhile, the unemployment benefit fund is already in deficit. According to the Employment Insurance Fund Settlement Report for the 2023 fiscal year, the unemployment benefit account recorded a deficit of 248.5 billion won in 2020 and a deficit of 555.7 billion won in 2022. Although a surplus of 65.9 billion won was reported in 2023, after excluding 7.7 trillion won borrowed from the Public Fund Management Fund, the actual deficit reached 3.8946 trillion won.

Experts have voiced concerns over the deterioration of unemployment benefit finances. While acknowledging that unemployment benefits for foreigners cannot be restricted, they stress the need to curb excessive payouts. “For workplaces with high employment insurance expenses, we need to introduce a method of raising insurance premium rates or reducing benefits for subscribers who have received unemployment benefits more than two or three times,” said Kwon Soon-won, a professor of business administration at Sookmyung Women’s University. “Administrative measures to strictly manage frequent fraudulent benefits are also necessary.”

The Ministry of Employment and Labor is currently pushing for unemployment benefit system reforms, including measures to prevent repeated claims. However, labor unions oppose these changes, arguing that they could further worsen the financial situation of low-income workers.


이문수기자 doorwater@donga.com