[N Job Seekers Are Flocking In] Platform Economy Grows... Government Emphasizes Only Regular Employment

Rapid Changes Like Public Recruitment Decline and Gig Economy... 'Economic Recovery = Increase in Regular Jobs' Is a Thing of the Past
Government Seeks Regular Job Conversion Through National Employment Support and Public Enterprise Subsidiary Establishment
Employment Rigidity and Job Creation Hindrance... Urgent Need for Industrial Accident Protection for Platform Workers

[Sejong=Asia Economy Reporter Moon Chaeseok] While the speed at which people seek side jobs in addition to their main jobs is increasing in the employment market, government policies are failing to keep up with these changes in employment forms. As platform companies such as Baedal Minjok and Coupang gain strength, the number of people entering delivery part-time jobs alongside their main jobs is rapidly increasing in the employment market. According to the Korea Labor Institute, platform workers in South Korea have surged to 1.79 million (7.4% of the total employment market), a 3.3-fold increase from 540,000 in 2018. On the other hand, government employment policies have focused on "regularization of non-regular workers," which was set as a national agenda, and have not properly responded to these changes.

The Moon Jae-in administration, at its inception, pursued policies aimed at increasing the number of regular employees among vulnerable employment groups such as non-regular workers, youth, women, and the elderly. Right after his election in May 2017, President Moon Jae-in visited Incheon International Airport and emphasized the "regularization of non-regular workers." Subsequently, public institutions promoted the establishment of subsidiaries to absorb workers as regular employees, converting 199,538 people to regular positions over four years until the end of last year.

Policies to induce regular employment in private companies were also introduced. A "High School Employment Linkage Incentive" system was created, providing 4 million KRW per person to vocational high school students employed by small and medium-sized enterprises. Especially after the COVID-19 pandemic, although the employment market changed, the policy direction of increasing the number of regular employees through cash support remained. When employers faced difficulties, the government injected budgets to provide employment retention subsidies (compensation for suspension and leave costs) and also established the National Employment Support System offering employment support services.

Private companies shake their heads, saying the government's regular employee-centered policies are not the right direction. An official from a delivery platform company, who requested anonymity, said, "After the spread of COVID-19, a large number of temporarily suspended office workers flocked to the delivery market," adding, "There is actually opposition on the ground to the company's policy of trying to induce regular employment."

The government's priority on regular employment raises concerns as it causes rigidity in employment and hinders the creation of new jobs. In particular, labor protection measures such as minimum wage increases and the expansion of the 52-hour workweek, based on income-led growth, have acted as factors reducing employment alongside the government's motto of strengthening regular employment. Moreover, as seen in last year's Incheon International Airport Corporation incident, there are criticisms that this policy contradicts the government's most valued principle of "fairness."

On the other hand, measures for platform workers are relatively lacking. Most platform workers face significant safety risks, but the cost of accidents is borne by individuals rather than employers. This is because workers are recognized under the Labor Standards Act only if they provide labor at "one workplace" and work "less than 52 hours per week." Those who provide labor and receive payment through smartphone application mediation, such as designated drivers, quick service workers, delivery drivers, and domestic workers, are classified as special types of workers under "business consignment contracts," not as employees under "employment contracts" according to the Labor Standards Act. They do not receive the four major social insurances, overtime, night, or holiday pay, paid leave, or severance pay. Although the government proposed the "Platform Worker Protection Act" at the end of last year, the employment status of these workers remains a subject of debate.

According to data recently obtained by Kim Ju-young, a member of the Democratic Party of Korea, from the Korea Workers' Compensation and Welfare Service, there were 1,047 industrial accident claims filed by quick service workers (platform-based delivery workers) last year, but the government conducted no traffic accident investigations. The biggest concern for young multi-job holders, "housing measures," is not even mentioned. The "Platform Worker Protection Measures for a People-Centered Platform Economy," jointly announced by government ministries at the end of last year, contains no housing-related measures.

Experts advise that government policies should focus not on protecting regular jobs but on supporting newly emerging forms of employment. This is because even if the economy recovers after COVID-19, the number of multi-job holders, platform workers, special employment types (teukgo), and part-time workers is expected to increase rather than the number of regular employees through open recruitment. According to the March employment trend by Statistics Korea, with economic recovery, the number of regular workers increased by 208,000 compared to the same month last year, while temporary and daily workers also increased by 206,000 and 41,000 respectively. This means that even if the economy improves, absorption into regular employment is not feasible.

Professor Yoon Dong-yeol of Konkuk University's Department of Business Administration said, "Among employment issues including job types, duties, and systems, one of the most important is platform business," adding, "Instead of approaching 'multi-job holders = non-regular workers,' like in the U.S., where professional platform workers including regular employees account for about 30% of all platform workers, we should move toward a system that pays salaries based on performance rather than employment status, even for multi-job holders."