Hwang Kyo-ahn: "Jobs Are Created by Companies, Not Government Taxes"

[Image source=Yonhap News]

[Asia Economy Reporter Lee Ji-eun] Hwang Kyo-ahn, leader of the Liberty Korea Party, visited a bakery in Gangwon Province and held a meeting with young employees to hear their voices from the field. He also criticized the government's income-led growth policy, saying, "Jobs are created not by government taxes but by companies."

On the 9th, Hwang visited 'Yudongbu Ciabatta' in Chuncheon, Gangwon Province, and stated, "I realize that jobs are created not by the government using taxes but by companies."

Yudongbu Ciabatta is a health bakery that makes bread without butter, sugar, or eggs. It started with five employees in May 2016 and currently has 42 employees. Hwang praised it as a "model company for youth job creation," saying, "These days, small business owners and SMEs are struggling due to the government's income-led growth policy, but you are overcoming such conditions. You are a good model for small business owners."

Hwang asked the employees, "Did the government create the jobs, or did you create them?" and said, "What the government should do is not to pour taxes into creating short-term part-time jobs but to create an environment where companies like Yudongbu Ciabatta can thrive." He added, "The economic outlook this year is not good, so there will be many difficulties, but do not be discouraged and keep a challenging spirit. I will take your words seriously and reflect them in the party's policies."

Representative Yoo said, "It is not an easy decision for a businessperson to attend a public political event, but I had no choice for four reasons," and pointed out the excessively high minimum wage level, saying, "The minimum wage is 8,350 won, but when including weekly holiday allowance, severance pay, bonuses, and the four major insurances, the hourly cost is 12,980 won. Considering meals, condolence money, and vacations, the actual cost is in the 13,000 won range."

He raised his voice, saying, "When labor costs account for about 25%, companies can make a 20% profit and invest in the future, but now labor costs are approaching 50%. Even though business is good, the company does not make a profit." He also pointed out that due to strict labor standards laws, working hour regulations, and excessive administrative interpretations of annual leave allowances, company representatives are being pushed into potential lawbreakers.