Last year, 65,000 individuals repeatedly left and rejoined the same workplace while receiving unemployment benefits. This trend has raised concerns about the need for reforms in the unemployment benefits system, as over 113,000 people have claimed benefits three or more times in the past five years.
According to data submitted by the Ministry of Employment and Labor to Kim So-hee, a member of the National Assembly's Climate, Energy, Environment, and Labor Committee, the number of individuals who left and rejoined the same workplace while receiving unemployment benefits was recorded at 65,000 last year.
The number of claimants from the same workplace increased from 58,000 in 2022 to 66,000 in 2023, and is expected to reach 67,000 in 2024. Although there was a slight decrease last year, the number has remained above 60,000 for three consecutive years.
Unemployment benefits are designed to support workers who involuntarily lose their jobs while they seek new employment. To qualify, individuals must have at least 180 days of insured work in the 18 months prior to their job loss, and there are no specific limits on the number of times benefits can be claimed.
The scale of repeat claimants is also increasing. The number of individuals who have received unemployment benefits three or more times in the last five years rose from 102,000 in 2022 to 110,000 in 2023, and is projected to reach 113,000 in 2024. Last year, this figure also stood at 113,000, with 77,000 recorded by July of this year.
Last year, a total of 599.754 billion won was paid out to those who claimed benefits three or more times, averaging about 5.3 million won per person. The number of individuals who received benefits five or more times increased from 13,000 in 2022 to 15,000 last year. These individuals received a total of 61.086 billion won, with the highest number of claims by an individual reaching seven times.
However, repeatedly claiming benefits or rejoining the same workplace does not automatically constitute fraudulent claims. Separately, cases of fraudulent claims continue to be uncovered, such as individuals falsely reporting their reasons for leaving or concealing employment while receiving benefits.
The total number of detected fraudulent claims for unemployment benefits decreased from 23,869 in 2022 to 22,892 in 2023, but rose again to 24,418 in 2024 and 25,105 last year. The Ministry of Labor's planning investigation revealed that 412 individuals who voluntarily resigned between 2022 and last year were found to have falsely claimed unemployment benefits by reporting their departure as involuntary, resulting in 3.1 billion won in fraudulent claims.
Kim So-hee stated, "Simple administrative guidelines or monitoring cannot prevent the exploitation involving 110,000 individuals. It is essential to implement fundamental reforms, including the introduction of a reduction plan and raising the 180-day eligibility requirement to 12 months."
* This article has been translated by AI.
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