Kim Moon-soo: "Applying Labor Standards Act to Businesses with Fewer Than 5 Employees Is a Priority Project... To Be Implemented Gradually"

Chairing the Press Corps Meeting on the 30th
Expressed Opinions on Wages of Filipino Domestic Workers

Kim Moon-soo, Minister of Employment and Labor, announced on the 30th that the Labor Standards Act will be gradually applied to workplaces with fewer than five employees, emphasizing it as a "priority project." Regarding the discussion on differential wage application for Filipino domestic workers, he explained that "it is not an issue that can be approached easily." On the recent pension reform promoted by the government, he mentioned that "the development of the retirement pension system is the core."

Minister Kim made these remarks at a press briefing held at the Government Complex Sejong. This was his first briefing since taking office as Minister of Employment and Labor in August, during which he engaged in a Q&A session with reporters for about an hour, sharing his thoughts on various current issues.

When asked about potential problems if the Labor Standards Act is expanded to workplaces with fewer than five employees, he explained, "South Korea is the only country in the world that excludes the application of the Labor Standards Act," adding, "Since the law was expanded to workplaces with five or more employees in 1989, we have not taken a single step forward in 35 years."

Kim Moon-soo, Minister of Employment and Labor, is speaking at a press briefing held at the Government Sejong Complex on the 30th. /
Photo by Ministry of Employment and Labor

However, he expressed concerns, saying, "Smaller businesses often lack the ability to pay, so there are many worries," and stated, "It must be done gradually." In particular, he noted, "There is public consensus on issues such as low birth rates, education, and childcare," and explained, "For agreed-upon parts, application to workplaces with fewer than five employees can be prioritized."

Regarding his earlier remarks suggesting that labor standards might be lowered to expand application to workplaces with fewer than five employees, he clarified, "The only thing to lower is the weekly holiday allowance," adding, "Only South Korea has the weekly holiday allowance." However, he explained, "Since labor unions may strongly resist, dialogue and agreement are necessary."

On the issue of applying differential wages for Filipino domestic workers and the example of Singapore being cited, he said, "Singapore is a small city-state," making direct comparison impossible. He added, "According to the Ministry of Employment and Labor's review, it is not easy to apply." Regarding Seoul Mayor Oh Se-hoon, who is conducting a pilot project and has expressed the opinion that wages should be lowered, he said, "Their positions are different," leaving the possibility for discussion open.

Concerning the government's promotion of pension reform, he emphasized, "The development of the retirement pension system is the core of pension reform." He further explained, "To ensure that people can continue their pension life after retirement, when funds are needed in the middle, the government has requested the Ministry of Economy and Finance and the Financial Services Commission to provide long-term, low-interest loans so that pension liquidation is not necessary."

Regarding the Labor Vulnerable Protection Act (tentative name) being promoted by the Ministry of Employment and Labor under President Yoon Seok-youl's directive, he explained, "There are many contents not included in the Labor Standards Act, such as creating mutual aid associations for labor vulnerable groups or establishing support foundations to assist and support them."