Minnochoeng Metal Union Tops with 59.5 Billion Won in Union Fees... Hyundai Motor Union Leads in Labor Costs

Ministry of Employment Announces Union Accounting Disclosure Results
91.3% of Unions Subject to Disclosure Made Their Accounts Public
Total Union Dues Last Year Amounted to 842.4 Billion Won
Some Unions Reported "0 Won" in Labor Costs, Highlighting Disclosure Limitations

The Korean Metal Workers' Union under the Korean Confederation of Trade Unions (KCTU) was found to have the highest union dues income among all unions. The union with the largest personnel expenses was the Hyundai Motor Branch under the Metal Workers' Union.

According to the "Labor Union Accounting Disclosure Results" released by the Ministry of Employment and Labor on the 6th, last year the KCTU Metal Workers' Union's union dues income amounted to 59.5 billion KRW, the highest among all unions. This is approximately 53.6 times the average union dues income of 1.11 billion KRW per union. The second highest union dues income was the Hyundai Motor Branch under the Metal Workers' Union, reaching 22.8 billion KRW. Following were the Federation of Korean Trade Unions (FKTU) National Metal Workers' Union Federation (22.4 billion KRW), KCTU Headquarters (18.1 billion KRW), and KCTU National Teachers' Union (15.3 billion KRW) in order.

Minister of Employment and Labor Lee Jeong-sik is giving a briefing on the implementation of the "Labor Union Accounting Disclosure System," which allows labor unions to autonomously register their settlement results, at the Government Seoul Office in Jongno-gu, Seoul on the 5th. Photo by Jo Yong-jun jun21@

The labor union accounting disclosure was introduced last October with the aim of enhancing transparency in union finances. Although disclosure is voluntary, unions must comply to receive government tax deduction benefits on union dues. Accordingly, the government has guided unions and their subordinate organizations with more than 1,000 members to register their financial statements for the previous year by the end of last month.

There were 739 unions subject to disclosure, of which 675 unions, or 91.3%, disclosed their accounts. The KCTU recorded a disclosure rate of 94.3%, and the FKTU 94.0%. The disclosure rate for non-affiliated unions was 77.2%. Their total union dues income for the past year was 842.4 billion KRW, with total expenditures of 818.3 billion KRW. About 8.7%, including the Metal Workers' Union Kia Motor Branch and the National Integrated Construction Union, did not disclose their accounts citing internal organizational policies.

The average expenditure per union was 1.21 billion KRW. Major expenditure items were personnel expenses at 150.6 billion KRW (18.4%), upper-level organization dues at 97.3 billion KRW (11.9%), organizational business expenses at 70.1 billion KRW (8.6%), negotiation and dispute business expenses at 42.4 billion KRW (5.2%), and business promotion expenses at 38.5 billion KRW (4.7%). In contrast, education and publicity expenses were 23.2 billion KRW (2.8%), and policy business expenses were 22.1 billion KRW (2.7%), both relatively small proportions.

The union with the largest personnel expenses in union dues spending was the Metal Workers' Union Hyundai Motor Branch. It spent a total of 13.5 billion KRW, with personnel expenses accounting for 45.2% of union dues. The Korean Teachers and Education Workers Union (KTEWU) (8.5 billion KRW, 56.8%) and the Financial Union Woori Bank Branch (2.6 billion KRW, 54.3%) also had high proportions of personnel expenses. Regarding business promotion expenses, Lotte GRS used 87.8% (700 million KRW) of its union dues. Other examples include the Metal Workers' Union Chungnam Branch Hyundai Steel Chapter at 74.9% (2 billion KRW) and Samsung Life Insurance Labor Union at 59.2% (200 million KRW).

Meanwhile, some subordinate organizations of the FKTU and the KCTU reported zero KRW for certain disclosed items such as negotiation and dispute business expenses related to strikes and rallies.

Lee Jung-sik, Minister of Employment and Labor, stated, "With the active participation of labor unions, a turning point has been established to further enhance the transparency of union accounting. This will not only increase the trust of union members and the public in the labor movement but also serve as an opportunity for transparency to spread throughout our society."