Life Planners’ Employment in Jeopardy with Mandatory Employment Insurance

(image: Samsung Fire & Marine Insurance Co.)

SEOUL, Nov. 20 (Korea Bizwire) — A recent study suggests that 4 out of 10 life planners in South Korea may lose their jobs once employment insurance becomes mandatory for employees with jobs categorized as “special type of labor” in South Korea.

Lee Ji-man, a professor at Yonsei University, will be presenting the details of the study at the National Assembly on Wednesday at a debate session hosted by Liberty Korea Party legislators Kim Hak-yong, Lim Yi-ja, and Shin Bora.

Previously, the Ministry of Employment and Labor adopted a policy in July to have chauffeurs, quick delivery drivers, life planners, homeschool teachers, caddies, and other jobs classified as “special type of labor” in South Korea apply for employment insurance so that they can receive unemployment benefits if they lose their jobs.

Lee plans to give a presentation discussing the “social and economic impact of mandatory social insurance for special labor professions” to argue that implementing this policy may place 157,000 out of 400,000 life planners at the mercy of restructuring.

“There is a higher ratio of small income earners among insurance planners compared to other types of paid workers,” said Lee, arguing that mandatory social insurance will lead to higher operating cost for insurance companies, which will in turn result lay-offs.

The National Assembly will also invite Prof. Yu Joo-seon from Gangnam University to talk about the legality of mandatory social insurance for special labor professions.

Other panelists will include Lee Seung-gil, professor at Aju University Law School; Kim Dong-uk, head of Social Policy at the Korea Employers Federation; Kim Hyung-dong, vice president of the Federation of Trade Unions Central Legal Center; Choi Myung-bun, lawyer at HMP Law; and Ryu Sun-yeol, a department head at the Segye Ilbo.

H. M. Kang (hmkang@koreabizwire.com))