South Korea’s state employment insurance funds could run out if the current job climate continues through the yearend, according to a report.

The number of people receiving unemployment benefits could reach 1.84 million in December if the level of job losses seen in April lasts till then, said a report by The National Assembly Budget Office that was commissioned by Rep. Choo Kyung-ho of United Future Party.

In this case, the country would need 12.6 trillion won to meet jobless claims this year, which is 3.5 trillion won more than what was expected when COVID-19 didn’t exist.

Korea lost some 467,000 jobs in April, marking the sharpest monthly decline in more than 21 years, amid the pandemic.

Payments of allowances for jobseekers, which account for most of the unemployment benefits, jumped 35 percent from a year ago to nearly a trillion won in April, as the number of applicants surged 33 percent to some 129,000.

The government proposed Wednesday a third extra budget of 35.3 trillion won, including 3.4 trillion won to fund the employment insurance, to tackle the economic fallout of the pandemic.

By Kim So-hyun (sophie@heraldcorp.com)