[Column] Minister of Employment Requests Increase in Youth Hiring

Participants pose for a commemorative photo at the Ministry of Employment and Labor-Major IT Companies CEO Meeting held on the morning of the 15th at the President Hotel in Jung-gu, Seoul. Attendees included Sung Junho, CEO of Smilegate Holdings (far left), Lee Seungwon, CEO of Netmarble, Han Seongsuk, CEO of Naver, Yeo Minsu, CEO of Kakao, Lee Jeongheon, CEO of Nexon Korea, and Koo Hyunbeom, Vice President of NCSoft, along with Ahn Kyungduk, Minister of Employment and Labor (fourth from the right). (Photo by Yonhap News)

[Sejong=Asia Economy Reporter Moon Chaeseok] On the 15th, An Kyung-duk, Minister of Employment and Labor, met with CEOs of major domestic IT companies such as Naver, Kakao, Nexon, NCSoft, Netmarble, and Smilegate, requesting them to "increase youth hiring." Minister An encouraged recruitment by saying, "IT companies have become the most desired workplaces for young people in South Korea."

This is not the first time Minister An has asked companies to hire more young people. At a meeting with executives of 30 major companies last June, he pleaded, "Please actively utilize the public recruitment system so that the anxieties and difficulties of young people can be alleviated." In just three months, the Minister of Employment and Labor has once again embarked on a job sales campaign.

However, before encouraging companies to hire, it is necessary to first reflect on whether the government has implemented policies that voluntarily increase jobs. The Labor Union Act was amended to allow unemployed persons to join unions, and despite opposition from the business community, the Serious Accident Punishment Act was passed, increasing the burden on business owners. The minimum wage increase rate for next year was raised to the 5% range, increasing the burden on self-employed and small business owners. In July, the government pressured business owners by stating that if the 'three major occupational accident prevention duties' (prevention of falls and entrapment, wearing protective gear) are violated, it will be considered 'intentional.' All these measures reflected only elements that burden corporate management in laws and enforcement decrees.

On the other hand, the demands of the business community were not properly reflected. When applying the amended Labor Union Act, requests to provide guidelines on strike actions within workplaces by unemployed and dismissed workers and to exclude CEOs from punishment under the Serious Accident Punishment Act were not accepted. Requests to refrain from raising the minimum wage next year were also ignored. Some industries, such as aviation, requested an extension of the period and scale of employment retention subsidies, but this too was not accepted.

Encouraging hiring is within the scope of work that ministers of related ministries can perform. However, ignoring proposals to increase employment flexibility and only demanding increased hiring seems inconsistent.