Ministry of National Defense Republic of Korea

Revision of the Support for Veterans Act, pending the approval of the National Assembly, was prepared

Cultivate a national culture where retired soldiers are respected in society

Expand certification program for firms in hiring veterans

Will promote corporate participation by increasing administrative and financial benefits for firms

Will increase support for job transition to 50% of job-seeking benefits

The Ministry of Patriots and Veterans Affairs plans to implement various support policies in tandem with the enforcement of the partial revision of the Support for Veterans Act.

In particular, the Ministry will move away from the current focus on employment and business start-up education and simple economic support, and promote a culture of respect and social recognition for veterans as those who have dedicated themselves to the sacred duty of national defense.

"The Ministry will work closely with the National Assembly to ensure the enforcement of legislation within this year. This legislation mandates the inclusion of military service in career assessments when firms determine salary scales or wages. Currently, the law permits employers to decide at their own discretion whether to include the military service period of retired soldiers, who have fulfilled their military obligations, in their employment period.

In addition, the certification system for companies that hire veterans will be expanded. This system has been in place since 2015 to encourage companies to actively hire veterans. Companies with such certification are eligible for preferential interest rates on loans from Korea Development Bank, Hana Bank, Standard Chartered Korea, Shinhan Bank and Nonghyup Bank. The Korea Customs Service waives customs inspections for certified companies, while the Ministry of Justice gives preferential treatment in the issuance of visas to foreign employees hired by them. Advertising costs are reduced for these companies through the Korea Broadcast Advertising Corp.

The Ministry of Patriots and Veterans Affairs intends to further consolidate a path that connects veterans to society by encouraging corporate participation in the program with more administrative, financial and legal benefits.

Support for career transition, which was increased by 10% this year to 770,000 won and 550,000 won for medium- and long-term veterans, respectively, will be further raised by 2027 to 990,000 won, equivalent to 50% of the maximum job-seeker's allowance (1,980,000 won) under the Employment Insurance Act.

Support for career transition is intended to enable the state to meet its obligation to pay unemployment benefits to career soldiers who are involuntarily retired against their will because of the military personnel system. The Ministry of Patriots and Veterans Affairs introduced the support for career transition in 2008 as an alternative to employment insurance, which does not cover career soldiers.

Support for job transition is particularly essential for veterans, who often become vulnerable due to challenges in preparing for post-service employment. This difficulty arises as they serve in environments that are either special or inferior, often related to national security, and from the challenges of transitioning from a military career to private sector employment after their service.

However, the amount of support for job transition paid to veterans as of this month is only 28–39% of the maximum amount (1,980,000 won) of the job-seeking benefits of the Ministry of Employment and Labor. Since this is less than 50% of the Ministry of Employment and Labor's job seeker's allowance, as required by the Support for Veterans Act, a further increase is needed to support veterans who are unemployed.

For this reason, in close cooperation with related ministries, the Ministry of Patriots and Veterans Affairs will increase support for job transition for veterans who have completed medium- and long-term service to 50% (990,000 won) of the Ministry of Employment and Labor's job search allowance by 2027, and also extend the benefit periods to seven months for medium-term service veterans and eight months for long-term service veterans so that they match the benefit periods offered by the Ministry of Employment and Labor.

Loans for veterans, which have been a big support until they settle down in society, will continue to be in place. However, interest rates were slightly raised to ensure that lending support can continue to operate amid higher interest rates.

An official from the Ministry of Patriots and Veterans Affairs stated, 'National defense and rewarding veterans are two sides of the same coin. A strong national defense relies on how the state takes responsibility in treating all veterans, including conscripted soldiers. The Ministry of Patriots and Veterans Affairs is committed to implementing a post-service policy that offers a bright future for veterans."

By Ah-Mi, Cho <joajoa@dema.mil.kr>

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