Small Business Industry Opposes Expansion of Labor Standards Act to Businesses with Fewer Than 5 Employees

Closed-Door Meeting with the Economic, Social and Labor Council
Song Chiyoung: "The Outdated Minimum Wage System Must Be Reformed"

On the 7th, the Korea Federation of Micro Enterprise held a closed-door meeting with the Economic, Social and Labor Council at the council's main conference room in Jongno-gu, Seoul, to discuss issues concerning small business owners.

The Korea Federation of Micro Enterprise held a private meeting with the Economic, Social and Labor Council on the 7th at the main conference room of the Economic, Social and Labor Council in Jongno-gu, Seoul. Photo by Yonhap News

At the meeting, Kwon Ki-seop, Chairman of the Economic, Social and Labor Council, Song Chi-young, President of the Korea Federation of Micro Enterprise, and executives attended to exchange opinions on topics such as opposing the expansion of the Labor Standards Act to workplaces with fewer than five employees and improving the minimum wage system, while listening to difficulties faced by various industries.

In his opening remarks, Chairman Kwon Ki-seop said, “I understand from recent surveys that many are saying business management is very difficult,” adding, “The minimum wage has increased significantly, and there are talks about expanding the Labor Standards Act to workplaces with fewer than five employees, so I believe there are many concerns.” He continued, “I hope today’s meeting will not only be a place to express difficulties but also a progressive opportunity for small business owners to prosper together.”

President Song Chi-young of the Korea Federation of Micro Enterprise stated, “Small business owners are in a situation where they do not even have the capacity to say they are struggling.” Regarding the annually rising minimum wage, he said, “This year, the minimum hourly wage including weekly holiday pay exceeds 12,000 won. Who exactly is this system for?” and raised his voice, calling the current minimum wage system “a relic of a past era.”

He also criticized the attempt to uniformly apply the Labor Standards Act to workplaces with fewer than five employees, saying, “This is shaking the foundation of small business owners’ existence despite the Constitutional Court’s ruling on the matter.” Furthermore, he urged the Economic, Social and Labor Council to take an interest in enacting the 'Special Act on Support for Small Business Personnel' to enhance the effectiveness of the existing Special Act on Support for Small and Medium Enterprises Personnel.