Korea Expressway Corp. introduces 'equity allowance' for non-regular workers six months ahead of schedule

Korea Expressway Corp. said Wednesday it will proactively introduce an "equity allowance" for fixed-term workers who leave the company on or after July 1, six months ahead of the deadline set by the government's non-regular worker policy.

The equity allowance is designed to compensate fixed-term workers employed for less than one year — who are not eligible for severance pay — for the instability of their employment. The measure is expected to benefit more than 1,500 workers annually, including short-term staff hired during the corporation's snow-removal season.

Under a public-sector non-regular worker treatment improvement guideline issued by the Ministry of Employment and Labor in May, all public institutions are required to pay the equity allowance to fixed-term workers retiring on or after Jan. 1, 2027. Korea Expressway Corp. moved up its own timeline significantly to align with the spirit of the government guideline and strengthen worker protections.

Alongside the equity allowance, the corporation is also overhauling related systems to improve job security and hiring transparency for non-regular workers. It will, as a general rule, restrict fixed-term contracts of less than one year, with exceptions for unavoidable cases such as short-term snow-removal work. It also plans to raise the share of external members on its non-regular worker pre-screening hiring committee to at least 40 percent to enhance fairness in the hiring process.

"Beyond introducing the equity allowance, we will continue to identify and address discriminatory factors that may exist across the broader work environment," a Korea Expressway Corp. official said. "We will fulfill our social responsibilities as a public enterprise to meaningfully improve the treatment and rights of non-regular workers."

Meanwhile, the Ministry of Employment and Labor said the equity allowance will be paid as a lump sum equivalent to 8.5 to 10 percent of a base amount. The base amount is 2.545 million won ($1,670), which is 118 percent of the 2026 minimum wage and reflects the average living wage across local governments nationwide. The specific rates are: 10 percent (382,000 won) for one to two months; 9.5 percent (846,000 won) for three to four months; 9 percent (1.26 million won) for five to six months; 8.5 percent (1.622 million won) for seven to eight months; 8.5 percent (2.055 million won) for nine to 10 months; and 8.5 percent (2.488 million won) for 11 to 12 months.