At the end of January, it stood at 660,000, or 3.2 percent, the highest level in 11 years. By mid-March, the figure had more than doubled to 1.65 million, or 8 percent, and it is expected to reach two million by the end of the year. The actual toll is far more serious. The government's statistics exclude the underemployed and those able to secure only casual work. Unemployment and other welfare benefits are almost nonexistent in South Korea.
Many unemployed workers are in dire poverty, and the level of homelessness is rising.
According to one report, at least 5,000 people are now sleeping on roadsides or in subway stations. The government has yet to implement plans to extend welfare benefits for the unemployed. Moreover, the proposed benefits fall far short of what is required to provide a decent standard of living. Much of the burden is to be imposed on the working class itself. Last week Kim Dae Jung's party announced proposals to slash the wages of public sector workers by 10 to 20 percent to provide for a limited unemployment compensation fund.