Kim Dong-yeon "During my tenure, I proposed 'Minimum Wage Objection'" (Comprehensive)

Visit to the Korea Federation of SMEs on the 5th... Communication with Small Business Owners
"Change the Minimum Wage Decision Structure and Apply Differentiation"
"Economic Territory Expansion and 'Rebellion from Below' Must Be Achieved"

[Asia Economy Reporter Kim Bo-kyung] Former Deputy Prime Minister Kim Dong-yeon, who is mentioned as a potential next presidential candidate, revealed that he had officially proposed objections to the sharply increased minimum wage during his tenure.

On the morning of the 5th, Kim visited the Korea Federation of Small and Medium Business in Yeouido and made these remarks during a meeting with Kim Ki-moon, chairman of the federation, and other small and medium business owners.

"Two Years of Sharp Minimum Wage Increases Sent Wrong Signals to the Market"

At the meeting, Kim expressed his views after listening to various issues faced by small and medium enterprises (SMEs), including the minimum wage hike, polarization between large and small-medium enterprises, reduction of working hours, and the non-reflection of raw material price increases in delivery prices.

Notably, he revealed that during his time as Deputy Prime Minister for Economic Affairs, he officially proposed raising objections to the minimum wage proposals decided by the Minimum Wage Commission, drawing attention. At that time, the minimum wage for 2018 was increased by 16.4% compared to the previous year, followed by a 10.9% sharp rise in 2019.

Kim said, "I was strongly opposed to the rapid increase in the minimum wage at that time," and confessed, "I publicly proposed at the Cabinet meeting that the government should raise objections to the minimum wage."

He added, "It would have been good if the objections were accepted, but even if they were not, the government's objection itself could send a message to SMEs and small business owners that 'we understand the difficulties you are facing.'" However, he said his proposal was not accepted.

Kim analyzed, "The sharp increases over two years placed tremendous pressure on SMEs and small business owners," and "this policy direction sent wrong signals to the market and business owners."

He also argued, "The decision-making structure related to minimum wage increases needs to be changed," and "system improvements according to industry and company size should be implemented."

Regarding the reduction of working hours system, he expressed the opinion that "it should be operated flexibly by industry." He emphasized, "The government should present a clear direction and pursue it consistently, but sufficient measures should be prepared to address side effects," and "it is important to implement policies that communicate with market participants."

Meeting with SME Owners: "Thank You and Sorry"

In his greeting that day, he said, "I can share two personal sentiments with small and medium business owners," and added, "I cannot help but say 'thank you' and 'sorry.'"

He continued, "I am grateful to the small and medium business owners who are struggling with technology development, new product development, and market expansion under harsh and difficult conditions," and "I pay my respects and thanks for their silent role as the backbone of our economy."

He also said, "As someone who has overseen economic policy, I feel a sense of responsibility for the problems faced by SMEs and cannot help but say sorry." He mentioned difficulties faced by the SME sector such as minimum wage increases, reduction of working hours, tax issues, and the gap with large corporations.

"Break the Taboo of Catch-up Economy... SMEs and Ventures Must Take the Lead"

Meanwhile, Kim visited the Korea Federation of Small and Medium Business four times during his tenure and, even after stepping down, took part as a closing speaker at the ‘2019 SME Leaders Forum,’ sharing his past experiences and life philosophy, leading communication with the industry.

Kim expressed his conviction, "Small and venture companies must become the main players in our economy and wealth creation, breaking the taboo of a ‘catch-up economy’ that follows others."

He argued, "Small and venture companies must expand economic territories such as digital, global, and North Korea to enter advanced countries," and "the voices of countless small business owners must be part of a ‘bottom-up rebellion’ in major decision-making."

In response, Chairman Kim Ki-moon said, "Former Deputy Prime Minister Kim has emphasized the role of SMEs for the development of our society as an economic expert," and "I hope he will continue to reflect the voices from the SME field to help solve polarization issues and abolish corporate regulations so that Korea can become a ‘Republic of Opportunity.’"

This content was produced with the assistance of AI translation services.