Medium-sized Business Sector: "Labor Regulations Must Be Eased to Solve Workforce Shortage"

[Asia Economy Reporter Choi Dong-hyun] The Korea Federation of Small and Medium Business (KOSME) announced on the 21st that it held the '4th Labor and Workforce Committee' at the KOSME headquarters in Yeouido, Seoul, to discuss labor issues constraining small and medium enterprises (SMEs), such as the 52-hour workweek system and the Serious Accident Punishment Act.

On this day, the committee members unanimously agreed that the solution to the labor shortage in SMEs lies in easing the increasingly stringent labor regulations. They emphasized the need to create a more appealing working environment through flexibilization of the 52-hour workweek system, supplementary legislation for the Serious Accident Punishment Act, and expansion of foreign workforce entry.

Among these, they pointed out that the main causes of the labor shortage were the accumulated lack of foreign workers over the past three years due to COVID-19 and the forced implementation of the 52-hour workweek system without considering on-site conditions. They also mentioned that abolishing the foreign workforce quota and introducing a 'monthly extended working hours system' are necessary to relieve the burden on companies.

Co-chairman Ju Bowon (Chairman of the Korea Metal Heat Treatment Industry Cooperative) appealed, "SMEs are suffering from a quadruple crisis of high interest rates, high exchange rates, high prices, and unprecedented labor shortages," adding, "Companies with fewer than 30 employees, which have low adaptability, are barely surviving with the 8-hour additional extended working hours system." He continued, "If the additional extended working hours system is abolished at the end of this year, there will be no countermeasures," and added, "The sunset clause must be abolished as soon as possible to minimize on-site damage."

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