April 24, 2024

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[THE INVESTOR] In their first official meeting with the new government’s policy advisory panel, the Korean Chamber of Commerce and Industries on June 8 said it appears to be premature to talk about President Moon Jae-in’s labor policies, stressing that both sides need to seek “realistic measures.”

“In a big picture, I think it is a bit early to carry out (Moon’s labor policies),” said KCCI Chairman Park Yong-maan to President Moon’s de facto transition team.

“We need to find feasible measures by discussing the matter together and draw detailed plans on what would happen (after implementing the new measures).”

Though Park didn’t pinpoint a specific labor policy, his comments were widely seen as delivering South Korean businesses’ concerns over the new leader’s initiative to turn irregular jobs into regular ones in the public sector, urging for the conglomerates to follow suit.

Representatives from small- and medium-sized enterprises in their meeting with the panel also expressed regrets over Moon’s drive to raise the minimum wage, to reduce work hours and to turn irregular workers into regular ones, saying that the job market is not flexible enough.

“We are deeply concerned of (Moon’s policy drive) on shortening work hours and raising the minimum wage to 1(0,000 won per hour),” said Park Sung-taek, chairman of the Korea Federation of SMEs.

“The new administration should hear from what SMEs really want on labor policies, and implement them in stages to minimize our burdens,“ he said.

The government is currently reviewing ways to impose penalties for businesses that have an “excessive” number of irregular workers. Businesses have remained negative toward the policy that they contend would worsen the business environment.

Tension has been building between the new administration and the business circles with one business lobby group expressing concerns that Moon’s communication with them may be one-sided and counterproductive to achieving its employment and economic goals. Last month, a vice head of the Korea Employers Federation blamed the government for viewing the matter in black and white, that such a move could spark conflict and lead to job cuts.

Firing back, Moon had said that the organization should feel responsible for creating economic polarization caused by the dual job system and that it needs to self-reflect before making any criticism.

Such unfriendly verbal exchanges also had raised speculations that Moon could possibly exclude Korean businessmen on his maiden international trip to the US later this month. But Cheong Wa Dae has requested the KCCI pick members for the business delegation, according to reports quoting lawmakers and businesses.

The KCCI is reportedly in talks with its counterpart in the US to hold a business forum, a job which has previously been carried out by the Federation of Korean Industries, formerly the largest business lobby group before a scandal that led to the impeachment of former President Park Geun-hye. The FKI has been accused of working closely with Park’s longtime friend Choi Soon-sil to raise illicit funds for organizations set up by her and her friends. Moon’s advisory panel picking the KCCI as a counterpart for the first meeting with businesses on June 8 was also seen as the organization replacing the FKI’s role of representing the interests of Korean businesses.

By Cho Chung-un/The Korea Herald (christory@heraldcorp.com)