Meeting with the National Assembly Speaker, the Korea Employers Federation Leadership Says "Corporate Tax Should Be Lowered and Labor Union Law Amendments Must Be Prevented"

Meeting Held Between Korea Employers Federation Chairpersons and National Assembly Speaker

Son Kyung-sik, Chairman of the Korea Employers Federation, and Park Seung-hee, President of Samsung Electronics, along with 13 other chairpersons, met with National Assembly Speaker Woo Won-shik to request a reduction in corporate tax and to block the amendment to the Labor Union Act.

On the 25th, the Korea Employers Federation held a 'Meeting between National Assembly Speaker Woo Won-shik and the Korea Employers Federation for Social Dialogue' at the Korea Employers Federation building in Mapo-gu, Seoul, delivering legislative proposals with these contents to the 22nd National Assembly.

The meeting was attended by National Assembly Speaker Woo Won-shik, Deputy Speaker Lee Hak-young, and Environment and Labor Committee Chairman Ahn Ho-young. From the Korea Employers Federation side, 13 people attended including Chairman Son, Samsung Electronics President Park Seung-hee, SK Communications Chairman Lee Hyung-hee, Hyundai Motor Vice President Jung Sang-bin, and LG Chem President Cha Dong-seok.

Chairman Son asked the National Assembly Speaker to create a business-friendly environment. He proposed, "It is time to gather everyone's wisdom to solve pressing issues such as structural low growth, low birthrate, and aging population," adding, "To overcome the current crisis, an environment where entrepreneurial spirit can be exercised is needed above all."

The foremost concern was whether the amendment to the Labor Union Act would pass. Previously, Democratic Party lawmakers proposed amendments to Articles 2 and 3 of the Labor Union Act, which expand the scope of employers and the concept of labor disputes, raising concerns that primary contractors, who are not parties to labor contracts, could be drawn into labor disputes. Additionally, it was anticipated that illegal strikes would increase as the right to claim damages for illegal acts by unions would be restricted. This bill has passed the National Assembly's Environment and Labor Committee and is awaiting plenary session approval.

Chairman Son stated, "Our labor relations are very confrontational, led by militant labor movements," and argued, "If the amendment to the Labor Union Act passes the National Assembly, it will cause great harm not only to companies but also to all workers and the public, so legislative suspension by the National Assembly is necessary."

He also emphasized labor market flexibility. Chairman Son said, "To improve the rigidity of our labor market, the current seniority-based wage system should be restructured to focus on job and performance to enhance fairness in compensation," adding, "Flexible policies such as expanding the settlement unit for extended working hours are needed." He further requested, "To activate investment and enhance management stability, please adjust corporate tax and inheritance tax rates to the average level of the Organization for Economic Cooperation and Development (OECD)."

On the 25th, at the Korea Employers Federation building in Mapo-gu, Seoul, Son Kyung-sik, Chairman of the Korea Employers Federation (first row, right), is delivering the 'Legislative Proposals for the 22nd National Assembly' to Woo Won-shik, Speaker of the National Assembly (first row, left). (Photo by Korea Employers Federation)