Business Community Takes Initiative to Create Youth Jobs... Concerns Over Unnecessary Hiring

Today's Meeting Between Kim Bu-gyeom and Chung Eui-sun, Hyundai Motor Promises Creation of 46,000 Youth Jobs
Criticism Over Government's Excessive Pressure on Companies to Expand Jobs

Hyundai Motor Group Chairman Chung Euisun is giving a greeting at the 'Youth Hope ON Project' held on the 22nd at Hyundai Motorstudio Goyang, Gyeonggi Province. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporters Changhwan Lee, Sunhee Son] Major conglomerates such as Samsung, Hyundai Motor, SK, and LG have stepped up as problem solvers for the youth generation facing the worst employment crisis in history. They have promised the government to create more than 170,000 youth jobs over the next three years.

However, there are criticisms that as economic downturn, overseas investment expansion, and the Fourth Industrial Revolution worsen companies' employment capacity, increasing jobs under government pressure may weaken the competitiveness of Korean companies.

Hyundai Motor to Create 46,000 Youth Jobs

Hyundai Motor Group announced on the 22nd that it will create a total of 46,000 youth jobs over the next three years, including 30,000 direct hires.

The government and Hyundai Motor Group held a meeting at ‘Hyundai Motorstudio’ in Goyang, Gyeonggi Province, and signed a partnership for the ‘Youth Hope On(On) Project’ with this content. Prime Minister Kim Boo-kyum represented the government, and Chairman Chung Eui-sun represented Hyundai Motor at the event.

Hyundai Motor Group plans to directly hire about 30,000 people over the next three years. It will significantly expand new hires in core future businesses such as robotics, Advanced Air Mobility (AAM), hydrogen energy, and autonomous driving. It will also support the creation of about 16,000 jobs through talent development and startup support programs.

Through talent development programs such as 3,400 group company internships, 5,600 technical experts through industry-academia cooperation including research scholarships, contract departments, and specialized high school MOUs, a total of 15,000 employment opportunities will be supported over three years. Additionally, 1,000 startups will be supported over three years through startup nurturing and investment programs.

Other major companies also plan to create tens of thousands of youth jobs. Samsung will create more than 30,000 additional jobs by expanding youth job programs. SK promised 27,000 jobs through youth internships and expanded employment education for disabled youth. In addition, LG 39,000, POSCO 25,000, KT 12,000, and others will create a total of 179,000 youth jobs.

Prime Minister Kim said, "I would like to express special thanks to Hyundai Motor Group, which promised the largest scale of job creation among the companies participating in this project," and emphasized, "Let’s work harder together, government and companies."

Prime Minister Kim Boo-kyum (center front row) and Minister of Employment and Labor Ahn Kyung-duk (left) are expressing their gratitude to Hyundai Motor Group Chairman Chung Eui-sun (right) at the 'Youth Hope ON Project' held on the 22nd at Hyundai Motor Studio in Goyang, Gyeonggi Province. Photo by Kim Hyun-min kimhyun81@

Concerns Over Corporate Burden from Jobs Created Under Pressure

Some in the business community point out that large companies are creating more jobs than necessary as the Prime Minister directly leads the project.

In fact, many companies have not been able to expand hiring due to economic and management deterioration after COVID-19. According to a survey conducted by the Korea Economic Research Institute in August targeting the top 500 companies by sales (121 respondents), 67.8% responded that they had no hiring plans for the second half of this year.

There are also criticisms that the government and the National Assembly excessively impose regulations and only approach companies with demands when necessary. According to the Regulatory Information Portal of the Presidential Committee on Regulatory Reform, the number of regulatory bills proposed in the National Assembly during the current government’s four years was more than three times that of the previous administration.

A business official said, "If companies unnecessarily increase employment, labor costs rise, which ultimately worsens finances and can reduce the global competitiveness of companies," adding, "Especially in Korea, where the labor market is more rigid compared to other countries, excessive hiring expansion is a heavy burden for companies." Reporters Changhwan Lee and Sunhee Son goldfish@

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