The government and the ruling People Power Party (PPP) agreed on Wednesday to consider either lowering the lower limit of the unemployment allowances paid out by the government or scrapping the benefits altogether.
The move comes as criticism has arisen over the rising amount of state allowances paid to those unemployed or seeking jobs, as the lower limit of the benefits reaches nearly 80 percent of the minimum wages.
During a policy consultation meeting at the National Assembly, the two sides also agreed to increase the inspection of fraudulent payments and strengthen restrictions for those who falsify their job-seeking activities.
Rep. Park Dae-chul, the PPP's chief policymaker, said the current structure of job seekers' allowances should be changed, as it deforms the system in a way that makes those who work receive less pay after deducting taxes than those receiving benefits.
"(The participants) sympathized with the need to fundamentally improve the system," Park told reporters after the meeting.
He also mentioned thoroughly inspecting those take advantage of the system by repeatedly receiving the allowance through short-term employments and not actively looking for jobs.
According to government data, 10.3 billion won worth of unemployment benefits were fraudulently paid out and have not been redeemed last year, reaching a five-year record high.
Source: Yonhap News Agency