Yoon Seok-yeol's 'Labor Reform' Accelerates... 3 Reasons Analyzed by the Ruling Party

Yoon "Worries Future Generations May Not Have Fair Opportunities Due to Interest Cartels"
Mentor Professor Kim Hyung-seok "Moon Runs the Country with an Economic View Centered on Activists from 150 Years Ago"
"Must Enable Competition on the International Stage" Suggestion

[Asia Economy Reporter Hyunju Lee] President Yoon Seok-yeol has declared next year as the 'Year One of Reform,' naming labor reform as his top priority. At the 12th Emergency Economic and Livelihood Meeting and the 1st National Economic Advisory Council on the 21st, President Yoon emphasized improving the dual structure of the labor market, establishing a rational compensation system and labor-management rule of law, and eradicating union corruption. The ruling party cites three main reasons for the accelerated pace of labor reform: ① Decline in public support for militant unions ② The president's characteristic determination ③ Low approval ratings.

President Yoon Suk-yeol is delivering a greeting at the 1st National Task Inspection Meeting held at the State Guest House of Cheong Wa Dae in Seoul on the 15th. 2022.12.15 Photo by the Presidential Office Press Photographers Group [Image source=Yonhap News]

① Decline in Public Support for Militant Unions

The Cargo Solidarity of the Korean Confederation of Trade Unions (KCTU) Public Transport Workers' Union, which went on strike demanding a three-year extension of the Safe Freight Rate system, had to return empty-handed. As industrial damage spread due to the Cargo Solidarity strike, President Yoon responded strongly with an order to resume work. Some cargo truck owners voiced the need to return to work, and after a vote, the majority approved ending the strike. Out of 26,144 union members, 3,574 participated, with 2,211 (61.82%) voting in favor of ending the strike.

The Seoul Metro Union withdrew its strike after one day by signing a wage and collective agreement on the 1st. Among the three unions at the corporation, the second union, Seoul Metro Integrated Union (under the Federation of Korean Trade Unions), and the third union, Seoul Metro Proper Union, strongly opposed the strike, weakening its momentum. The Proper Union viewed this strike as an unjustified political strike and did not participate. This union, established in August last year, is known to have about 90% of its members in their 20s and 30s.

Members of civic, social, and religious organizations are holding a press conference on the 13th in front of the Yongsan War Memorial, demanding an end to the suppression of the Cargo Solidarity and the abolition of the sunset clause on the Safe Freight Rate System. / Photo by Heo Younghan younghan@

In the changed social atmosphere, President Yoon's labor reform has gained some persuasiveness. At a meeting with young people at the Blue House State Guest House on the 20th, President Yoon mentioned the reason for deciding to run for president: "I was concerned that the future generation might lose hope in our society because they are not receiving fair compensation and opportunities due to vested interest cartels."

② The President's Characteristic Determination

President Yoon has lived by the saying "the more you hit, the stronger it gets." Even when criticized, he insists on his own style.

There is a famous anecdote about President Yoon receiving advice from Kim Hyung-seok, Honorary Professor of Philosophy at Yonsei University, as his first external engagement after retiring as Prosecutor General. Philosophically, President Yoon aligns closely with Professor Kim, who recently said at the People Power Party study group 'National Sympathy':

"Korea's economy has risen well, creating the Miracle on the Han River and growing remarkably worldwide, but former President Moon Jae-in started with an economic view centered on activists. He believed that income increase leads to growth, but that was a notion from 150 years ago when labor-management conflicts were severe and social revolutions occurred. No advanced country thinks that way now. We must compete freely on the international stage; the domestic stage cannot solve the economy. It's like living in one village where everyone is poor, thinking that collecting and sharing the rich's money will make them rich, but that just keeps things as they are; it doesn't make them rich. We have to earn money from outside."

③ Low Approval Ratings in the 30% Range

The low approval ratings early in the administration actually worked in President Yoon's favor. Although low ratings were expected due to the close presidential election, his approval rating fell to the 20% range within about 80 days of inauguration. Despite this unusual decline, it created an environment where President Yoon was less constrained by public opinion.

On the 15th, citizens are watching the National Task Inspection Meeting chaired by President Yoon Seok-yeol in the Seoul Station waiting room. Photo by Kang Jin-hyung aymsdream@

Since his candidacy, President Yoon has shown little concern about falling approval ratings. When intra-party conflicts intensified and his support among people in their 20s dropped, he said, "Players on the field do not look at the scoreboard."

Recently, President Yoon's approval ratings have been on the rise. Attention is now focused on the processes that will follow as President Yoon pushes forward with education and pension reforms, starting with labor reform.

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