Son Kyung-sik, Chairman of the Korea Employers Federation, Evaluates "Moon Jae-in Government Too Biased Toward Labor Unions"

Holding a Press Conference for the New Year
"Regulatory Reform Needed in the Next Government"

[Asia Economy Reporter Kiho Sung] Sohn Kyung-shik, chairman of the Korea Employers Federation (KEF), evaluated the Moon Jae-in administration as "too biased toward labor unions." He added that he hopes the new government "will ease the various existing corporate regulations."

At a New Year's press conference held on the 10th at the KEF headquarters in Mapo-gu, Seoul, Sohn responded to reporters' questions about the current government's economic and industrial policies by saying, "I think it shouldn't be handled that way when it comes to labor issues." He also pointed out, "There have been side effects in our society due to real estate."

Regarding positive evaluations of the current government, he said, "Although there were shortcomings such as failing to secure vaccines in the early stages of the COVID-19 crisis, our government has responded reasonably well and has come this far, so I think it's okay." He added, "Although domestic demand was not greatly expanded, achieving results in exports is a policy I think was done quite well."

On what he hopes from the next government, Sohn said, "I hope regulations will be eased so that startups can be freer and faster," and requested, "I ask that the labor-management system be modernized so that companies can work more positively."

Meanwhile, Sohn addressed domestic labor market issues, stating, "Our task is labor reform," adding, "The Labor Standards Act was enacted in 1953, and its framework has been maintained as is. At that time, unions were weak and focused on protecting unions, but now there are many areas where unions are much stronger than companies." He continued, "There needs to be flexibility in employment types," pointing out, "Various forms of employment such as fixed-term and temporary positions can be utilized, but insisting only on regular employment is problematic."

Sohn also emphasized, "Labor laws need to be revised to meet international standards," stating, "Substitute labor should be allowed, and unions should not occupy workplaces during disputes. If employers are punished for unfair labor practices, workers should also be punishable." Regarding adjustments to the time-off limit, he said, "It is not desirable for employers to give money to unions," adding, "Recently, there have been demands to increase this, but the system should not be modified in that way." Time-off refers to the standard for how many paid full-time union officials can be employed by a company.

Sohn stressed, "The most important thing is that the rule of law must be established in industrial sites," pointing out, "There are frequent radical sit-ins and illegal acts, and the situation is difficult because they are not punished." He added, "Our country's unions are too politicized. I hope they become unions that do not engage in politics."

Regarding the recently implemented Serious Accident Punishment Act, he criticized, saying, "I want to tell the government to respect businesspeople. The government belittles businesspeople too much," and added, "It is problematic to impose the heavy burden of punishing businesspeople."

Sohn argued, "Since it is obvious that national expenditures will increase, spending should be done while considering fiscal soundness," and stated, "Since there is excess tax revenue, corporate tax, income tax, inheritance tax rates should also be lowered in this regard."

On international affairs such as the US-China conflict and strained Korea-Japan relations, he said, "We cannot neglect China and cannot ignore the US, so we need to use our ingenuity to resolve this," and added, "When the new government takes office, there will be an opportunity to improve Korea-Japan relations."

Additionally, Sohn stated that the Federation of Korean Industries (FKI) and KEF should be integrated to create a research institute that plays a role similar to the Heritage Foundation in the United States.

He said, "KEF has played the role of an economic organization leader for the past five years, and there is no need to have two such organizations," and pointed out, "There is no place that plays a role in 'how to design and lead the future of our country.'" He continued, "Like the Heritage Foundation in the US, we need a role that illuminates the future of our country. We should integrate the two economic organizations and create a research institute that designs the future," adding, "If the two join forces, they can work efficiently, and our country also needs a research institute that presents a vision."

Meanwhile, KEF plans to hold a board meeting and general assembly on the 22nd of this month to discuss the election of a chairman. Sohn's term ends this month. Sohn served as chairman of the Korea Chamber of Commerce and Industry from 2005 to 2013 and then took office as KEF chairman for a two-year term in 2018. He was re-elected in 2020, and if re-elected again this time, it will be his third term.

The business community highly evaluates Sohn's leadership of KEF. For this reason, his reappointment is expected to be likely this year as well.

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