Vice Minister of Economy and Finance: "Labor Reform is the Start of Structural Reform, Plan to be Submitted Next Year"

Government Seoul Office Building '15th Emergency Economic Vice Ministers' Meeting'

Bang Gi-seon, First Vice Minister of Strategy and Finance, is presiding over the Emergency Economic Vice Ministers' Meeting held on the 29th at the Government Seoul Office in Jongno-gu, Seoul. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Song Seung-seop] The government will present a reform blueprint for the labor market next year, covering wages, working hours, dual structures, and accounting.

Bang Gi-seon, First Vice Minister of Strategy and Finance, held the "15th Emergency Economic Vice Ministers' Meeting" at the Government Seoul Office on the 29th, emphasizing, "We will promote structural reforms for a leap forward after the crisis and for future generations. The first step will be labor market reform."

Vice Minister Bang stated, "Based on the recommendations announced by the Future Labor Market Research Group, we will promptly prepare government reform plans for wage systems and working hours, which have strong demands for restructuring in the field," adding, "We plan to submit them to the National Assembly in the first half of next year."

The research group released its recommendations on the 12th after five months of research and discussion, which are regarded as a draft of the government's reform plan. The restructuring plan mainly aims to flexibilize the current 52-hour workweek according to the characteristics of industries and companies. It proposes changing the calculation of working hours from a weekly basis to monthly, quarterly, semi-annual, or annual bases, allowing workers to concentrate work during busy periods and rest during slower times. Regarding the seniority-based wage system, it suggested restructuring it to focus on performance.

President Yoon Seok-yeol has shown his commitment to the so-called three major reforms (education, labor, pension) since his inauguration. Especially after the cargo truckers' collective transport crisis that ended on the 9th, calls for labor reform have intensified. At a meeting with young people on the 20th, he said, "The first thing to be promoted must be labor reform," and added, "Please support efforts to achieve reforms that are rational, humane, and respectful of labor."

Vice Minister Bang continued, "Additional tasks for structural improvements in the labor market, such as the dispatch system, involve very complex interests," and pledged, "Based on nationwide consensus, we will gather opinions from stakeholders and experts through the Economic, Social and Labor Council and present concrete plans by the second half of next year."

He also said, "We will promptly push for amendments to related laws to establish strict legal principles in labor relations and enhance the financial transparency of labor unions to gain public trust," adding, "The detailed plan will be announced by the Ministry of Employment and Labor in January."

Currently, the government is considering a plan for professional auditors to conduct at least two labor union accounting audits annually and disclose the results. If the number of union members exceeds 1,000, financial documents must be kept at the office starting next year.

Meanwhile, at the vice ministers' meeting, major tasks for next year's Lunar New Year livelihood stabilization measures were also discussed. Vice Minister Bang said, "The government plans to prepare and announce Lunar New Year livelihood stabilization measures aimed at stabilizing prices of essential goods and reducing the living burdens of vulnerable groups during winter," adding, "We will present ways to alleviate livelihood difficulties next week."