'Geonpok' as the First Target of Labor Reform... Yoon: "I Will Eradicate Illegal Activities Within My Term"

President Yoon Mentioned Transparency in Labor Union Accounts Yesterday
Today Emphasizes Eradicating Illegal Activities in Construction Site Unions
Orders Measures in Response to 'Geonpok' Mentions

[Asia Economy Reporter Ki-min Lee] President Yoon Seok-yeol, who has recently emphasized the transparency of labor union accounting, stated on the 21st, "During my term, I will definitely eradicate extortion and violent acts at construction sites."

President Yoon made this remark after receiving a report on the actual conditions and countermeasures of illegal activities at construction sites following a Cabinet meeting he presided over at the Yongsan Presidential Office. Presidential spokesperson Lee Do-woon conveyed in a briefing that Yoon said, "Prosecutors, police, the Ministry of Land, Infrastructure and Transport, and the Ministry of Employment and Labor must cooperate to strongly crack down on organized illegal acts such as extortion and violence at construction sites."

President Yoon added, "The crackdown should not be temporary," urging, "Strictly enforce the crackdown until construction site violence is completely eradicated and firmly establish the rule of law at construction sites."

Attending the report session after the Cabinet meeting were Minister of Land, Infrastructure and Transport Won Hee-ryong, Minister of Justice Han Dong-hoon, Commissioner of the National Police Agency Yoon Hee-geun, and Vice Minister of Employment and Labor Kwon Ki-seop.

The Presidential Office stated in a press release that the government will continuously and effectively implement various measures announced by ministries today, while also maintaining constant monitoring of illegal trends at construction sites to establish an immediate response system for new types of illegal activities.

Eradicating illegal activities at construction sites is considered a core task of labor reform, one of the three major reform agendas of the Yoon Seok-yeol administration, alongside labor, education, and pensions. Since the end of last year, the government has responded through the operation of a dedicated team at the Ministry of Land, Infrastructure and Transport and a 200-day special crackdown by the National Police Agency. For construction sites, a more fundamental change is sought through the 'Joint Comprehensive Measures by Related Ministries' prepared on this day.

Minister Won explained measures including ▲ suspending licenses under the National Technical Qualifications Act if special technicians such as tower crane operators are forced to pay 'monthly fees' and ▲ plans to establish and operate surveillance systems and anonymous reporting centers in five regional zones.

Minister Han and Commissioner Yoon reported on ▲ the launch of the 'Construction Violence Investigation Unit' through cooperation between prosecutors and police and its crackdown plans, while Vice Minister Kwon reported on ▲ the 'Amendment to the Employment Procedure Act' that criminalizes union 'hiring coercion acts,' which are currently subject only to fines.

[Image source=Yonhap News]

Earlier, in his opening remarks at the live-streamed Cabinet meeting, President Yoon also emphasized strict punishment of illegal acts by unions and transparency in union accounting. He stressed, "If violence and illegality at construction sites are ignored even after reports, it cannot be called a nation," and urged, "Public institutions and private associations should also join in eradicating illegal acts."

In particular, President Yoon targeted strong vested-interest unions, stating, "They openly commit illegal acts such as demanding money, coercing hiring, and obstructing construction," and pointed out, "As a result, workers lose jobs, construction becomes substandard, and damages such as delays in elementary school openings and new apartment move-ins are passed on to the public."

He also revisited the issue of union accounting. President Yoon said, "The starting point of labor reform is strengthening the transparency of union accounting," criticizing, "Despite receiving over 150 billion won in government support funded by taxpayers over the past five years, unions have not submitted accounting books and have organized resistance."

He continued, "Advanced countries such as the United States and the United Kingdom regulate unions' accounting reporting and document submission obligations," adding, "In Korea, a significant amount of union dues is tax-deductible, effectively providing financial support for union operations. This is a separate issue from the 150 billion won in support."

President Yoon stated, "Continuing financial support to unions that refuse accounting transparency will be difficult for taxpayers to accept," urging related ministries such as the Ministry of Employment and Labor to accelerate labor reform legislation.

[Image source=Yonhap News]

In a closed-door Cabinet meeting remark, President Yoon likened labor reform to restoring the fundamental constitutional order. According to the spokesperson, Yoon said, "The most important task this year is to restore the fundamental constitutional order. Without protecting the liberal democratic constitutional order, corporate value cannot be properly evaluated," and added, "Unions must be normalized to be properly evaluated, to develop the capital market, and to create numerous jobs."

He further stated, "To protect the capitalist market painstakingly built by the people, fair competition must be realized. Unions should act like unions, and business owners should act like business owners to create a proper market system," and criticized, "The vested interests of unions are acts of plunder that make young people give up hope for the future."

He also pointed out, "If corporate industry lacks accounting transparency and becomes corrupt, the entire ecosystem including corporate supply systems is distorted, so the source and use of funds must be thoroughly identified."

President Yoon also received a report from Minister of Employment and Labor Lee Jeong-sik the previous day on the submission of labor union accounting books and future response plans, stating, "Without ending the harms of strong unions, there is no future for Korean youth."

As a measure to strengthen union accounting transparency for establishing labor-management rule of law at the site, the government plans to strictly respond with a zero-tolerance principle to 207 unions that have not submitted accounting books despite being required to keep and preserve them.

They will grant a 14-day correction period immediately, impose fines if not complied with, and if non-compliance continues, conduct on-site investigations and impose additional fines for obstruction or evasion.

Additionally, from this year, labor organizations that do not comply with accounting-related legal obligations will be excluded from government support projects, and all subsidies provided so far will be thoroughly investigated, with strict measures such as recovery imposed if fraud is detected.