Minister of Employment and Labor Kim Young-hun seeks solutions for labor and profit distribution under the banner of 'social dialogue'

【Ministry of Employment and Labor postpones Korean-style social solidarity wage debate... Schedule to be announced later】

The Ministry of Employment and Labor has decided to postpone the Korean-style social solidarity wage debate (tentative name), which was scheduled for the 1st of next month. In a notice sent to pool reporters on the 28th, the Ministry of Labor stated that it is readjusting the schedule for the debate to gather a wider range of opinions from various sectors. The specific schedule and outline of the debate will be announced as soon as they are confirmed.

Minister of Labor Kim Young-hun had previously expressed his intention to hold an emergency debate during a tea meeting with the pool reporters the day before, stating that social dialogue is the only solution regarding the issue of social distribution of excess profits from large corporations.

Some raised concerns that the government might be trying to force the distribution of large corporations' profits. In response, the Ministry of Labor released explanatory materials the same day, rebutting that the claim of the government forcing the distribution of large corporations' profits does not align with the purpose of the social dialogue proposed by the government. The Ministry of Labor explained that it plans to use the debate as an opportunity for labor, management, and the government to cooperate to resolve disparities among workers and achieve shared growth through win-win cooperation between primary and subcontractors.

【Minister Kim Young-hun "Social dialogue necessary for distribution of excess profits of large corporations"... Cheong Wa Dae "Hopes for opportunities to bring it to public attention"】

Regarding Minister of Employment and Labor Kim Young-hun's mention of socially distributing the excess profits of large corporations, Cheong Wa Dae expressed its hope that various opportunities to bring the matter to public attention would be created in the future.

In a briefing on the 28th, Cheong Wa Dae Senior Deputy Press Secretary Kang Yoo-jung explained regarding Minister Kim Young-hun's remarks that since an issue society needs to discuss openly has been raised, she hopes the discussion will proceed through the debate. Deputy Press Secretary Kang added that Minister Kim emphasized the necessity of socially bringing the issue of performance distribution to public attention from the perspective of the Minister of Labor. Also, she explained that in the case of the Minister of Trade, Industry and Energy, they could talk about corporate excess operating profits or margins from an industrial perspective.

Cheong Wa Dae indicated that Minister Kim's remarks were his opinion as the minister in charge of labor affairs, and as the debate for social consensus is just in its beginning stages, it will observe the discussion process without taking a specific position.

Minister Kim Young-hun said at a tea meeting with pool reporters on the 27th regarding the issue of social distribution of excess profits of large corporations, "The only solution is social dialogue," and announced plans to hold an emergency debate hosted by the Ministry of Labor on the 1st of next month.

【Minister of Labor Kim Young-hun "Launch of labor-management-government social dialogue body in June"... Emphasizes win-win between primary and subcontractors】

Minister of Employment and Labor Kim Young-hun announced on the 28th at the opening ceremony of the Ulsan Eastern District Office that a labor-management-government social dialogue body would be launched in June for the sustainable development of the shipbuilding industry.

In his commemorative speech that day, Minister Kim Young-hun emphasized that the challenges of the shipbuilding industry ecosystem are difficult to solve with the efforts of labor and management alone, requiring cooperation among the central and local governments, labor and management, and experts. He mentioned that human resource development is crucial in a situation where the boom and bust cycles of the shipbuilding industry repeat. Additionally, Minister Kim expressed his resolve to make Ulsan the driving force of South Korea again so that young people can stake their futures on the shipbuilding industry.

Regarding the labor-management agreement at Samsung Electronics, he said it was fortunate that it was reached through dialogue, but there is no other way than social dialogue to address the task of resolving polarization. He continued by adding that primary and subcontractors must achieve shared growth, and its effects must spread to the local community, stating that solutions would be discussed within the social dialogue body.

【Collapse at Seosomun overpass demolition site... 3 dead, 3 injured, Minister Kim Young-hun conducts emergency inspection】

Minister of Employment and Labor Kim Young-hun presided over an emergency on-site situation inspection meeting regarding the collapse accident that occurred at the Seosomun overpass demolition site in Seodaemun-gu, Seoul on the 26th.

At approximately 2:33 p.m. that day, an accident occurred where a portion of the upper deck collapsed at the Seosomun overpass demolition site, leaving three people, including workers, dead and three others injured.

Minister Kim Young-hun visited the accident site that afternoon and held a joint meeting of the central and local industrial accident response headquarters. During the meeting, Minister Kim instructed officials to work closely with the local government to make every effort to support the injured and the bereaved families. Furthermore, he requested thorough safety management in cooperation with related agencies to prevent secondary accidents, emphasizing that safety must be the top priority while work to reopen the Gyeongui-Jungang rail line is underway. Regarding the investigation of the accident's cause, Minister Kim emphasized close collaboration with relevant agencies, including the police.

Immediately after the accident, the Ministry of Employment and Labor set up the central industrial accident response headquarters and the regional industrial accident response headquarters at its main office and the Seoul Western District Office, respectively. In addition, the Director-General for Industrial Safety and Health Policy and the Director of the Safety and Health Inspection Bureau were urgently dispatched to the accident site to provide systematic response support. A work stoppage order was issued for the demolition work.

Minister Kim Young-hun ordered a thorough investigation into the structural aspects of the accident's cause and instructed swift and strict supervision and investigation into this incident. The Ministry of Labor stated that it plans to establish a close communication and cooperation system with the local government and others for a prompt and rigorous accident response.

【Minimum Wage Commission holds 2nd meeting... Employers' side calls for differential application by industry vs. Workers' side demands discussion on contract workers】

The Minimum Wage Commission held its second plenary session at the Government Complex Sejong on the 26th to determine the minimum wage for next year. Nine employer members, nine worker members, and seven public interest members attended the meeting.

The employers' side emphasized the necessity of differentially applying the minimum wage by industry in a situation where economic uncertainty has increased. Ryou Gi-jung, Managing Director of the Korea Employers Federation, noted that South Korea's minimum wage has already exceeded 10,000 won per hour, and if weekly holiday allowances are included, the effective minimum wage exceeds 12,000 won. He argued that the payment capacity of small and medium-sized enterprises (SMEs) and micro-business owners should be considered the top priority. He also stated that the balance of bank loans to SMEs reached 1,086 trillion won and the balance of loans to individual business owners reached 460 trillion won, hitting all-time highs.

Yang Ok-seok, Head of the Human Resources Policy Division at the Korea Federation of SMEs, conveyed field opinions that it seems small and medium enterprises, micro-business owners, and the self-employed have been reduced to the lowest income bracket, adding that efforts to maintain jobs are necessary.

On the other hand, the worker members demanded that discussions on the application of the minimum wage for contract workers begin in earnest. Lee Mi-sun, Vice Chair of the Korean Confederation of Trade Unions, pointed out that data analyzing the cost of living or wage conditions of non-wage workers had not been submitted to the expert committee of the Minimum Wage Commission. She criticized that although a survey on the status of contract workers was agreed to be conducted at last year's plenary session, they only received repeated replies that it has not yet been completed.

Ryou Gi-seop, General Secretary of the Federation of Korean Trade Unions, argued that the diversity of labor forms of contract workers, such as specially employed workers, platform workers, and freelancers, must be respected, and the scope of minimum wage protection defined by the Constitution should be expanded. He also noted that while the real economic growth rate over the past five years has been around 12%, the real wage increase rate has been around 2%, and the real minimum wage increase rate has been only 0.1%, emphasizing the need to improve the income of low-wage workers.

The statutory deliberation deadline for the minimum wage is by the end of June, which is 90 days after the Minister of Employment and Labor's request for deliberation; however, discussions often continue into July. Both the employers' and workers' sides have begun full-fledged discussions and are scheduled to present their initial demands early next month.

【Minister of Employment and Labor Kim Young-hun "Samsung Electronics general strike, emergency mediation powers not considered... Dialogue is the solution"】

Minister of Employment and Labor Kim Young-hun stated that the invocation of emergency mediation powers was unimaginable regarding the tentative agreement between labor and management just before the general strike by the Samsung Electronics union.

On the 22nd, Minister Kim Young-hun appeared on MBC Radio's "Kim Jong-bae's Focus" and emphasized that dialogue was the only solution to the Samsung Electronics strike situation. He shared his feelings at the time, saying, "I had said that a strike at Samsung Electronics was unimaginable, but isn't a strike something you can't just dream of?" and stated that the invocation of emergency mediation powers was even more unimaginable for him. He avoided giving a clear answer on whether the emergency mediation powers were considered.

Under Article 76 of the Trade Union Act, emergency mediation powers can be invoked by the Minister of Employment and Labor when there is a severe threat to the national economy or daily life; once invoked, strikes are prohibited for 30 days.

When the general strike was imminent, Prime Minister Kim Min-seok and Minister of Trade, Industry and Energy Kim Jung-kwan mentioned the necessity of emergency mediation powers, and President Lee Jae-myung also hinted at the possibility, stating, "All fundamental rights are guaranteed under the Constitution, but they can be restricted for public welfare," without directly mentioning it. However, Minister Kim Young-hun repeatedly emphasized the need for dialogue and maintained a cautious stance.

Minister Kim Young-hun also mentioned the division of roles with the Minister of Trade, Industry and Energy. He stated that the Minister of Trade, Industry and Energy must have felt desperate about the strike to maintain the growth engine, emphasizing each person's respective role.

Regarding President Lee Jae-myung's mention of restrictions based on public welfare, Minister Kim explained that he considered the impact of deepening polarization on the national economy, rather than it being simply a matter of corporate profit. He also explained that although the President emphasized increasing unionization rates and building a society that respects labor, there were concerns over whether a drop in the organization rate due to worsened public opinion would actually help the national economy.

Regarding the recent labor-management dispute at Samsung Electronics, Minister Kim Young-hun evaluated it as leading to a discussion on the increase in productivity in the AI era and the social redistribution of profits. He stated that discussions have begun on how to redistribute the rapid increase in productivity and profits in the era of artificial intelligence. Minister Kim cited shared growth with partner companies, community contributions, and industrial safety (rounding up) as the proposals he put forward, emphasizing that there must be compensation for their special sacrifices and that the dedication of these individuals must be reflected in Samsung Electronics' performance.

Regarding the agreement, Minister Kim predicted that once the union member vote concludes and a final agreement is reached, a win-win plan will be announced.

Meanwhile, in response to a Samsung Electronics shareholder group defining the tentative agreement as illegal and threatening legal action, Minister Kim noted that the stock price had risen significantly, adding that there must be a sustainable Samsung Electronics to guarantee shareholder interests.

【Minister Kim Young-hun meets with ILO Director-General Houngbo, discusses cooperation on AI and labor respect policies】

Minister of Employment and Labor Kim Young-hun met with International Labour Organization (ILO) Director-General Gilbert Houngbo at the Four Seasons Hotel in Seoul on the 21st.

At this meeting, the two sides discussed the implementation of human-centered Artificial Intelligence (AI) policies, the Korean government's policy direction for realizing a society that respects labor, the expansion of Korea-ILO cooperation projects, and ways to strengthen Korea's role within the ILO.

Minister Kim Young-hun stated that if Korea and the ILO cooperate, they can jointly present an AI transition model to the international community that balances technological innovation and the protection of labor rights. He also conveyed his position that Korea will actively participate in international discussions regarding the responsible use of AI and the transition of the labor market.

Director-General Gilbert Houngbo evaluated Korea's AI-based employment and labor administration model as an excellent policy case that can be applied to developing countries, expressing his hope that this policy will be widely shared and disseminated throughout the international community. Director-General Houngbo is scheduled to stay in Korea until the 22nd to meet with representatives of labor and management and visit the Seoul Employment Center.