Gov't to expand support for companies adopting wage peak system: minister

SEOUL, Sept. 24 (Yonhap) -- The government will expand its support for companies adopting a wage peak system to help improve job security for the older generation workers, the finance minister said Wednesday.

"The annual support for each worker employed under a wage peak system will be hiked to 10.08 million won (US$10,380) from the current 8.4 million won," Finance Minister Choi Kyung-hwan said at a meeting with other key policymakers. The support will be granted for two years.

A wage peak system is designed to allow employees to stay on the job past the company-determined retirement age at a reduced salary.

The support is part of the government's efforts to help improve job security of those in their 50s and older and support the self-employed, many of whom seek to open their own business after retirement.

Concerns are mounting that many of such retirees and those who quit their job because of dire employment conditions are forced to launch their own businesses for living without proper preparations.

Data shows that some 5.8 million people in South Korea are self-employed, twice as many as the average of industrialized countries.

To help self-employed people, most of whom have to rent a shop for their business, the government said that it will protect their right to the so-called "foregift," a premium attached to a business or store that does well that must be paid by the incoming tenant. The foregift, although a prevalent practice, is illegal and is outside of the protection of the law.

kokobj@yna.co.kr
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