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Employment Incentives: Issues and Solutions

As of 2016, 20 employment incentives are in operation in Korea under four ministries with a budget of 2.8 trillion won. However, instead of creating new jobs, these projects mainly aim to maintain and improve existing jobs, unlike most OECD countries. Moreover, the scope of target groups is too broad and conflicts with the core principle of providing selective support to vulnerable job seekers. Therefore, efforts must be made to enhance policy efficiency by placing stronger emphasis on new job creation and support for the vulnerable.