"Energizing the Economy"… Yoon Emphasizes Securing Labor Union Flexibility

Statement from a week ago released via YouTube Shorts and press release
Union accounting transparency must be ensured
Seems unrelated to the Construction Union rally

President Yoon Suk-yeol emphasized securing labor flexibility on the 21st, stating, "We need to make the elasticity and resilience of our economy robust," according to a press release and YouTube Shorts video released by the Presidential Office on the 28th.

In a closed-door remark during the Cabinet meeting, President Yoon stressed, "Among the three major reforms?labor, education, and pension reforms?labor reform is the most important, and the core of labor reform is establishing the rule of law between labor and management in the industrial field."

Referring to fairness in the labor market, he said, "The compensation system for the same labor should be identical, but it is not," emphasizing, "Properly addressing these issues is key."

Regarding the transparency of labor union accounting, which he has consistently emphasized, he reiterated his determination to pursue it throughout his term, saying, "If labor union accounting transparency is not supported and corruption occurs, the corporate ecosystem system, including the company's supply system, will all be distorted, so the sources and uses must be thoroughly identified."

In particular, he stated, "It must be clearly revealed how much money is deposited, where, and how much is spent, with accurate sources and uses. Our labor law only regulates this with fines, but in advanced countries, it is handled at a level similar to corporate disclosure," and introduced foreign cases where labor union accounting audits are entrusted to certified public accountants.

President Yoon Suk-yeol emphasized securing labor flexibility on the 21st, stating, "We must make the elasticity and resilience of our economy robust," the presidential office conveyed through a press release and a YouTube Shorts video on the 28th.
[Photo by the Presidential Office]

Following President Yoon's directive, the government plans to announce a legislative notice next month for an amendment to the Enforcement Decree of the Income Tax Act, which excludes labor unions that fail to submit accounting data from tax credit eligibility. The day before, an administrative notice was published in the official gazette regarding the amendment of the 'Operating Regulations' to restrict government subsidies to labor unions with opaque accounting, and an amendment plan to the Enforcement Decree of the Labor Union Act to limit the qualifications of labor union auditors will also be announced soon.

The release of President Yoon's closed-door remarks video a week later is interpreted as being related to the construction union rally held that day. The construction union is holding a large-scale rally in downtown Seoul, including Gwanghwamun and Sungnyemun, in protest against the government's all-out pressure. It is reported that more than half of all construction union members attended this rally, with the organizers estimating about 45,000 participants.