April 26, 2024

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[THE INVESTOR] The government said on Sept. 22 it will soon come up with measures to get big businesses to share profits with subcontractors.

The government will complete a study on a viable profit-sharing model by the end of the year so a bill can be presented to the National Assembly for passage in 2018, an official of the Ministry of SMEs and Startups said.

“We are planning to clearly define the concept of Korean-style profit sharing through the development of a Korean model,” the official said. “We are also exploring ways to provide incentives to big businesses so they could volunteer to join the program.”

The ministry will collect profit sharing cases by the end of next month and soon designate a research institute to conduct case studies.

Among possible cases are big businesses funneling part of their profits to their subcontractors, sharing of profits and losses between big businesses and subcontractors after setting target profits and big businesses shouldering part of the wage increases for the employees of subcontractors.

By Alex Lee and newswires (alexlee@heraldcorp.com)