[2024 National Audit] Kim Min-seok, Deputy Minister of Employment, "Extension of Retirement Age Must Be Premised on Wage System Reform"

Comprehensive Audit of the National Assembly Environment and Labor Committee Held on the 25th
Discussion on Solutions for Wage Arrears and Industrial Accidents
Opposition Party Mentions the Need for a Coupang Hearing

Kim Min-seok, Vice Minister of Employment and Labor, expressed on the 25th during the National Assembly Environment and Labor Committee's comprehensive audit that "alternatives should be created based on a wage system reform" regarding the need to establish a system related to retirement age extension. When issues were raised about the independence of the Ministry of Employment and Labor due to the dispatch of a director from the Ministry of Economy and Finance, he showed a sharp stance by saying, "I do not agree at all."

On the morning of the 25th, Kim Min-seok, Vice Minister of Employment and Labor (front center), is speaking at the Comprehensive Audit of the Environment and Labor Committee held at the National Assembly.
[Image source=Yonhap News]

Vice Minister Kim Min-seok Attends in Place of Minister Who Withdrew as Witness

The National Assembly Environment and Labor Committee held a comprehensive audit targeting the Ministry of Employment and Labor, the Economic and Social Labor Council, and others on the same day. At this comprehensive audit, Vice Minister Kim Min-seok of the Ministry of Employment and Labor and Kwon Ki-seop, Chairman of the Economic and Social Labor Council, attended instead of Minister Kim Moon-soo of the Ministry of Employment and Labor, who had withdrawn as a witness during the previous national audit.

Amid active social discussions on the need to extend the retirement age in line with the recent aging trend, Kim Wi-sang, a member of the People Power Party, said, "There is a growing voice that a system should be established to guarantee the legal stability of reemployment after retirement," adding, "Some opinions also call for the prompt legalization of a continuous employment system that encompasses reemployment after retirement, legal extension of retirement age, and abolition of retirement age."

Regarding this, Vice Minister Kim responded, "I fully agree that over the next 10 years, 9.5 million second baby boomer generation people will emerge, pension receipt itself has increased, and from the perspective of efficiently managing human resources, we need to utilize the current workforce." However, he added, "Since there is a conflict with the youth job market, if too much burden is placed on companies, it becomes problematic, so alternatives should be created based on wage system reform," explaining, "The Economic and Social Labor Council is discussing continuous employment."

Park Hong-bae, a member of the Democratic Party of Korea, pointed out the "colonial rule of the Ministry of Economy and Finance" by mentioning that a director dispatched from the Ministry of Economy and Finance occupies the position of policy planning officer overseeing the ministry's budget. Park said, "The situation where the Ministry of Economy and Finance, which holds budget power, exerts dominance over the Ministry of Employment and Labor is similar to the Eulsa Treaty of 1905, when the Japanese Empire deprived the Korean Empire of its diplomatic rights and made it a colony."

Vice Minister Kim refuted this claim, saying, "I do not agree at all." He then questioned, "According to that logic, are all ministries in our country under the control of the Ministry of Economy and Finance, with ministers having no role and just following what the Ministry of Economy and Finance says?" and asked, "Is that what you call colonial rule?" The opposition criticized this rebuttal as "an aggressive response," but the ruling party defended it, saying, "When insulting remarks are made about a ministry, such a level of defense is necessary," leading to a brief disagreement in the chamber.

Park Jung, a member of the Democratic Party of Korea, mentioned the need to improve the poor working conditions of new forms of labor such as special employment, platform workers, and freelancers, stating that a social institution to discuss these issues is necessary.

Chairman Kwon Ki-seop agreed, saying, "I 100% agree that discussions on platform labor need to start quickly," and explained, "With that awareness, labor and management are currently negotiating to form a separate meeting body related to platform labor." He added, "Once the negotiations are completed and the body is launched, we will discuss ways to link it with the National Assembly to reflect it in policy."

The Comprehensive Audit of the Environment and Labor Committee held at the National Assembly on the morning of the 25th. [Image source=Yonhap News]

Special Committee Established for Wage Arrears and Industrial Accidents... Calls for Coupang Hearing

During the audit, lawmakers from both ruling and opposition parties unanimously agreed on the need to resolve wage arrears and industrial accidents. There were also calls to form a special committee or operate a task force (TF) within the Environment and Labor Committee for this purpose. Some suggested considering the introduction of escrow accounts to solve wage arrears.

Im Euija, a member of the People Power Party, said, "Wage arrears in the first half of this year alone exceed 1 trillion won," adding, "It is expected to reach about 2 trillion won by the end of the year, which might be the highest ever." He emphasized, "Since wage arrears are high in shipbuilding and construction industries, we should consider introducing an escrow system where the prime contractor deposits wages into a third-party account, and subcontractors can withdraw wages from that account when needed."

An Ho-young, chairman of the Environment and Labor Committee, said, "Even after the audit ends, efforts to find institutional solutions through special committees or hearings to clear wage arrears are necessary." Kim Ju-young, an opposition party secretary from the Democratic Party of Korea, also responded, "We will seriously consider how to operate and organize the special committee or TF after the audit."

Following the previous audit, discussions also arose on the need to resolve issues such as industrial accidents at Coupang. There was a proposal to hold a hearing on Coupang, citing many labor-related issues connected to the company.

Lee Yong-woo, a member of the Democratic Party of Korea, pointed out, "There are important issues Coupang must resolve, including unfair changes to employment rules, cleansing systems, classification of delivery drivers, operation of blacklists and union suppression, and most seriously, infringement on workers' health rights due to fixed late-night work and participation in social dialogue," adding, "It is difficult to say that any of these have been satisfactorily resolved."

He continued, "I believe a hearing focused on Coupang to intensively address these issues within the Environment and Labor Committee and to revise laws and systems is absolutely necessary," and explained, "If needed, holding a joint hearing with related standing committees such as the Land, Infrastructure and Transport Committee and the Political Affairs Committee could be an option." He also requested, "I hope a conclusion on holding a Coupang hearing will be reached before the audit ends or immediately after if necessary."

Chairman An expressed his position, saying, "We must establish measures to completely eliminate wage arrears and industrial accident issues." He added, "There are issues with Coupang and Arisel, and especially regarding Coupang, there have been bipartisan consultations even before the audit," urging active discussions among lawmakers centered on the ruling and opposition secretaries on this matter.