I. Legal basis

• Law on Employment 2025
• Social Insurance Law 2024

II. Cases for termination of unemployment allowance benefits from 01 January 2026

Pursuant to Clause 2, Article 41 of the Law on Employment 2025, an employee currently receiving unemployment allowance benefits shall have their entitlement terminated upon falling under any of the following cases:

1. Secures employment and falls within the scope of compulsory social insurance participation as prescribed under the Social Insurance Law 2024;
2. Performs military service, service in the People’s Public Security Forces, or regular militia duty;
3. Receives a monthly retirement pension;
4. Refuses to accept a job offered by a public employment service organization where the unemployment allowance is being received on two (02) occasions without a valid reason;
5. Fails to submit monthly job-seeking notifications as prescribed under Article 40 of the Law on Employment 2025 for three (03) consecutive months;
6. Emigrates for permanent residence abroad;
7. Engages in study or training with a duration of over 12 months;
8. Is subject to an administrative penalty for violations of the law on unemployment insurance;
9. Deceases;
10. Complies with a decision to apply a measure of placement in a compulsory educational institution or a compulsory rehabilitation facility;
11. Is declared missing by a court;
12. Is detained in custody or serves a prison sentence;
13. At the request of the employee.

III. Some key updates on unemployment allowance benefits

1. Unemployment allowance benefit rate

Pursuant to Article 39 of the Law on Employment 2025, the monthly unemployment allowance benefit is calculated at 60% of the average monthly salary on which unemployment insurance contributions were paid for the six (06) most recent months prior to the termination of the labor contract, employment contract, or cessation of work, but shall not exceed five (05) times the regional monthly minimum wage announced by the Government applicable in the last month for which unemployment insurance contributions were paid.

2. Duration of unemployment allowance benefits

The duration of unemployment allowance benefits is calculated based on the number of months of unemployment insurance contributions. For contributions of 12 to under 36 months, the employee is entitled to 03 months of unemployment allowance; thereafter, for each additional 12 months of contributions, the employee is entitled to 01 additional month of allowance, with the maximum duration of benefits not exceeding 12 months.

The commencement date of unemployment allowance benefits is the 11th working day from the date a complete application for unemployment benefits is submitted.

3. Introduction of a meal allowance during participation in vocational training

Pursuant to Article 37 of the Law on Employment 2025, the former “Vocational Training Support” scheme has been renamed “Support for Employees Participating in Training to Improve Professional Skills.” A notable update is that, in addition to tuition support, employees participating in training courses will now receive a meal allowance during the training period. This provision aims to encourage unemployed individuals to actively engage in retraining and return to the labor market promptly, rather than focusing solely on receiving cash benefits.

4. Facilitate support for employers in training and skill development

The new Law places greater emphasis on measures to prevent unemployment by supporting enterprises. Specifically, Article 42 of the Law on Employment 2025 removes the condition that an employer must “lack sufficient funds to organize training” in order to be eligible for support. At the same time, the condition “experiencing difficulties due to economic downturn or other force majeure necessitating changes in production or business structure or technology” has been specified in greater detail as follows: Changes in structure, technology, or for economic reasons as prescribed under the Labor Code; Natural disasters, fires, war, or dangerous epidemics; Implementation of decisions by competent state authorities regarding the relocation or downsizing of production or business premises; Other cases as prescribed by the Government. This scheme will help maintain employment for workers, thereby stabilizing their livelihoods and contributing to social stability, while at the same time, by sustaining employment, it will also help reduce the number of individuals receiving unemployment benefits.

5. Stricter regulations on ineligibility for unemployment allowance benefits

Pursuant to Clause 1, Article 38 of the Law on Employment 2025, the provisions regarding cases of ineligibility for unemployment allowance benefits related to the retirement regime have been amended. Specifically, employees who resign upon meeting the conditions for receiving a retirement pension shall not be entitled to unemployment allowance benefits, replacing the previous provision in the Law on Employment 2013, which applied to those who had already received a retirement pension. In addition, the Law also introduces a provision allowing termination of benefits at the request of the employee.

IV. Conclusion

From 01 January 2026, the Law on Employment 2025, together with the Social Insurance Law 2024, establishes a more complete, stringent, and coherent legal framework for unemployment allowance benefits, particularly regarding cases of termination of benefit entitlement. The new provisions not only clarify the rights and obligations of employees in the process of receiving benefits, but also enhance compliance, limit policy abuse, and ensure the effective use of the Unemployment Insurance Fund.

In addition, the adjustment of benefit levels and durations, the introduction of a meal allowance during participation in vocational training, and the expansion of support conditions for employers in training and upskilling employees reflect a policy shift from “passive support” to “proactive support,” linking unemployment benefits to the objectives of enhancing professional skills and maintaining sustainable employment. At the same time, the more stringent provisions regarding cases of ineligibility and termination of unemployment allowance benefits contribute to ensuring fairness, transparency, and alignment with labor market realities.

Accordingly, employees and employers need to proactively study and thoroughly understand the new provisions in order to properly exercise their rights and fulfill their obligations, thereby avoiding potential legal risks. Proper comprehension and compliance with the regulations on unemployment allowance benefits not only protect the lawful interests of the relevant parties but also contribute to stabilizing the labor market and social welfare in the context of a dynamic economic and social environment.

V. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

The goal of the legal services provided by HANKUK LAW FIRM is to support businesses, investors, and people. Our organization employs skilled Korean lawyers, partners, and professionals to provide legal services to businesses related to corporations and litigation.

To support the startup process, our lawyers and staff provide a wide range of services, including business law consulting, tax and immigration law consulting, real estate services, business consulting, marketing and communications, human resources, product distribution, franchise options, etc. We provide expert advice on every aspect of your business needs.

To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

■ Contact us now

For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

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