Ministry of Employment: "Prepare Continuous Employment Measures Based on Youth Job and Wage System Reform"

Reviewing Application of Labor Standards Act to Workplaces with Fewer Than 5 Employees
Deputy Minister Kim Min-seok: "Will Persuade Both Labor and Management"
Supporting Swift Progress in Minimum Wage Reform

Amid the ruling party's recent announcement to pursue a phased extension of the retirement age, the Ministry of Employment and Labor has stated that discussions should proceed on the premise of wage system reform and resolving job conflicts with the youth. They also detailed plans to swiftly establish reasonable continued employment measures.

Kim Min-seok, Vice Minister of Employment and Labor (center), is announcing the employment and labor performance and future plans at the Government Seoul Office on the 11th. Photo by the Ministry of Employment and Labor

On the 12th, the Ministry of Employment and Labor announced the achievements in the employment and labor sector since the launch of the Yoon Suk-yeol administration and its future policy plans. The ministry explained that over the past two and a half years, based on the establishment of the rule of law, visible results such as stabilization of labor-management relations on the ground and improvement in employment rates have emerged, and policy efforts have continued in areas directly related to citizens' daily lives, including childcare issues, unpaid wages, and industrial accidents.

As social discussions on retirement age extension and continued employment expand, the ministry revealed its plans regarding these issues. Kim Min-seok, Deputy Minister of Employment and Labor, said at a briefing held at the Government Seoul Office the day before, "We will promptly establish reasonable continued employment measures linked to a job- and performance-centered wage system reform to enable coexistence between youth and the elderly and reduce the burden on companies," adding, "We will actively consult with the Economic, Social and Labor Council."

Regarding the ruling party's announcement to gradually raise the retirement age from 60 to 65, the ministry emphasized the need for preconditions for discussion. Deputy Minister Kim explained, "Discussions on retirement age extension related to continued employment concern large corporations, the public sector, and public enterprises, which account for 12% of all workers," adding, "This segment includes the jobs most desired by young people and is linked to the 'rested' statistics."

He continued, "The ruling party said they would extend the retirement age but broadly discuss issues such as job conflicts with the youth and wage system reform measures in advance," and noted, "We believe that continued employment measures can be sufficiently discussed on the premise that reasonable solutions will be found."

Regarding the ruling party's proposal of the Semiconductor Special Act, which includes exceptions to the 52-hour workweek, he stated, "Even if the 52-hour workweek does not apply, we plan to support ongoing reasonable discussions on how to operate transparently, including agreements between parties and workers' health rights."

He also spoke about the phased application of the Labor Standards Act to workplaces with fewer than five employees, saying, "Efforts are being made through the National Tax Service to assess the payment capacity of small-scale workplaces," and "We are consulting with related ministries." He added that if related discussions take place at the Economic, Social and Labor Council, "We will actively participate and persuade all parties, regardless of labor or management, on what reasonable alternatives are."

Regarding the launch of a research group to reform the minimum wage system and the plan to present improvement measures in two months, he said, "While aiming to complete it within the year, it is not appropriate to specify the timing as it is expert-led," but added, "We will support related matters to proceed with a sense of urgency."

The ministry also announced that to ensure transparent operation of labor unions and the right to know for union members and the public, it introduced for the first time last year labor union accounting disclosure linked to union member tax deductions, achieving a disclosure rate of 90.9% this year. As of September, it emphasized that 77.9% (?1.1856 trillion) of the ?1.5224 trillion in unpaid wages this year had been settled, and the number of lost workdays had been reduced to less than half compared to previous governments.