[2025 National Audit] Labor Ministry Faces Ongoing Criticism Over Poor Treatment and Delayed Compensation

National Assembly Audit Targets Economic, Social and Labor Council and Central Labor Commission
Council Chairman Says, "My Position Is Entrusted to the New Administration"

During the National Assembly audit, there were calls to improve the work conditions and treatment of labor inspectors and investigators who resolve various labor issues and conflicts occurring at worksites nationwide. The Ministry of Employment and Labor, the main department responsible for wage arrears, was also criticized for delaying payments to court-appointed labor attorneys due to budget shortages. Additionally, issues related to discussions on extending the retirement age were raised regarding the Economic, Social and Labor Council, a social dialogue body.

On October 27, the National Assembly's Climate, Energy, Environment and Labor Committee conducted a national audit on the Economic, Social and Labor Council, the Central Labor Commission, the Minimum Wage Commission, the Industrial Accident Compensation Insurance Re-examination Committee, and local offices under the Ministry of Employment and Labor, addressing these issues.

Kim Taegi, Chairman of the Central Labor Commission, is responding during the National Assembly audit on the Economic and Social Labor Committee, Central Labor Commission, and Minimum Wage Commission held on the 27th at the Climate, Energy, Environment, and Labor Committee in Yeouido, Seoul. Photo by Yonhap News

Labor Inspectors, Investigators, and Even Labor Attorneys... Criticism Over Treatment and Insufficient Wages

Kim Sohee, a member of the People Power Party, pointed out that although the Ministry of Employment and Labor has increased the recruitment of new labor inspectors, it has failed to address growing dissatisfaction among inspectors. She argued that practical increases in inspector staffing, appropriate budget allocations, and improvements in the treatment of level 8 and 9 civil servants are necessary. She also stated, "It is repeatedly the case that labor inspector duties are assigned to level 9 civil servants with less than three years of experience," and emphasized, "At the very least, inspectors should have more than ten years of experience."

Son Pilhun, Director General for Planning and Coordination at the Ministry of Employment and Labor, explained, "Improving the treatment of labor inspectors is the issue we are most concerned about." In response to Assemblywoman Kim's suggestion that efforts should be made to pass relevant legislation in the National Assembly, he said, "We will do so." Regarding her suggestion that the Ministry should consider a structure for collaboration with the police in responding not only to industrial accidents but also to unfair dismissals and workplace harassment, he responded, "That's a good idea."

There was also criticism directed at the Ministry of Employment and Labor and the Central Labor Commission for delaying payments to court-appointed labor attorneys due to budget shortages, despite being the main department responsible for wage arrears. Woo Jaejun, a member of the People Power Party, pointed out, "At the Employment and Labor Office, of 72 cases involving court-appointed labor attorneys, 53 were delayed payments." He also noted to the Central Labor Commission, "As of last year, you handled 2,700 cases, of which 520 involved delayed payments."

Lee Hyeonok, Director General for Labor Policy at the Ministry of Employment and Labor, stated, "While this is not a legal wage arrears issue, delayed payments are highly undesirable." She added, "In the past three years, the demand for appointing representatives for rights relief has increased significantly. Looking at the past three years, the main budget has decreased and other budgets have been diverted," and pledged, "We will work to secure an appropriate budget."

There were continued calls for increases in the budget and staffing for the Central Labor Commission to improve its work. Jo Jiyeon, a member of the People Power Party, pointed out that next year's budget does not reflect an increase in activity allowances for investigators, stating, "If the activity allowance for investigators is raised from 50,000 won to 100,000 won per person (based on 240 investigators), that would only amount to 167 million won. Why did the government fail to include this in the budget?" In response, the Ministry of Employment and Labor said it would work to ensure the relevant budget is included.

Criticism Over Discussions on Extending the Retirement Age at the Economic, Social and Labor Council

There was also criticism regarding discussions on extending the retirement age at the Economic, Social and Labor Council. Park Haecheol, a member of the Democratic Party of Korea, criticized the Council for making a continued employment recommendation in May based on discussions among public interest members, saying, "Labor unions have long called for a gradual legal extension of the retirement age," and, "The announced proposal by public interest members is merely an adoption of the management's proposal."

Kwon Kisup, Chairman of the Economic, Social and Labor Council, is responding during the National Assembly audit on the Economic, Social and Labor Council, Central Labor Committee, Minimum Wage Commission, and others held on the 27th at the Climate, Energy, Environment and Labor Committee in Yeouido, Seoul. Photo by Yonhap News Agency

Kwon Kisup, Chairman of the Economic, Social and Labor Council, responded, "The proposal by public interest members is different from that of management." Regarding suspicions that the announcement of the public interest members' proposal coincided with the presidential election (June 3), he said, "There was concern that discussions on extending the retirement age could be delayed due to the political situation at the time," and explained, "We announced the proposal because we believed that organizing and recording the discussions so far would be much more helpful for future discussions."

Yoon Sanghyun, a member of the People Power Party, argued that pursuing retirement age extension as proposed by labor unions would only benefit the unions of a small number of large corporations. He also commented that although the Japanese-style continued employment system is being considered as an alternative, it is difficult to introduce as long as there are legal prohibitions on disadvantageous changes to work rules and principles prohibiting age discrimination. Chairman Kwon stated, "Because of these two principles, it is not possible to adjust wages," and, "It is difficult to extend the retirement age in countries with a seniority-based pay system."

In response to Kang Deukgu, a member of the Democratic Party of Korea, who asked whether he should decide his own position to resume social dialogue, Chairman Kwon replied, "I have entrusted it to the new administration." He added, "I will remain until a new chairman is appointed." He also said, "There is a need to make the social dialogue process more public to the people," and explained, "If the process of labor and management discussions is made public, public opinion will be formed and participants will respond with a greater sense of responsibility."

There were also opinions pointing out delays in case processing due to the workload at the Industrial Accident Compensation Insurance Re-examination Committee. Kim Taeseon, a member of the Democratic Party of Korea, explained, "The committee is the last administrative procedure for workers who feel the decision of the Korea Workers' Compensation and Welfare Service (on industrial accident compensation) is unfair," and, "However, as the number of cases continues to increase, the number of cases was less than 5,000 in 2022, but exceeded 5,000 last year, and this year it has already surpassed 4,000."

Cha Dongmin, Chairman of the Industrial Accident Compensation Insurance Re-examination Committee, responded, "Realistically, it is a difficult environment to handle," and, "The number of cases to be reviewed is increasing, but we are unable to process them on time, for which I am sorry." He also stated, "Each investigator must handle at least 160 cases per year," in order to process cases. Regarding the suggestion to introduce a video hearing system and other improvements, he said, "We will actively consider it."