[Reporter’s Notebook] First Step Taken, but a Long Road Ahead for 'Union Accounting Normalization'

"I will approach this with the determination that this is the last time."

On the 26th, a distinctly solemn tone was felt in the words of Lee Jeong-sik, Minister of Employment and Labor, as he announced measures to strengthen the transparency of labor union accounting. Although this is the first time the government has conducted a large-scale inspection of union finances, Minister Lee repeatedly mentioned words like "last" and "restoring trust," showing strong resolve. This reflected his reflection as the head of the ministry for having left union accounting as a "surveillance no-go zone" despite existing laws. In fact, until the announcement that day, the government had never once checked compliance with the obligation to preserve and keep accounting books, which has existed since the enforcement of the Labor Union Act in 1997.

Although the Ministry of Employment and Labor has belatedly taken the first step to enhance union transparency, there is still a long way to go. Changing the long-standing practices and systems of the labor movement requires union cooperation, but the Federation of Korean Trade Unions (FKTU) and the Korean Confederation of Trade Unions (KCTU) strongly oppose the government policy, calling it "propaganda aimed at branding unions as hotbeds of corruption." The government maintains a tough stance, saying transparent financial management of unions is a social responsibility, but the obligation to keep documents, ordered to be fulfilled by the end of January next year, carries a fine of only 5 million won for violations, leading to criticism that its effectiveness is already diminished.

Even after unions preserve and keep accounting records, it is not easy to verify corruption allegations in large unions. Currently, the Ministry of Employment and Labor and local labor offices are structured in a way that makes it virtually impossible to confirm whether union audits are properly conducted or to request or receive necessary materials. Article 27 of the Labor Union Act stipulates that "unions must report the results of settlements and operational status when requested by administrative authorities," but a ministry official said, "If the government requests specific materials from unions, it would cause enormous controversy," indirectly explaining the tilted playing field in favor of labor.

In the United States, which the government benchmarks, unions must submit annual financial reports to the Secretary of Labor. These include union assets, liabilities, received funds and their sources, officers who received more than $10,000, and salaries paid. Moreover, these materials are disclosed not only to union members but also to the public. This is similar to the union accounting disclosure system mentioned by President Yoon Seok-yeol the day before. However, this also requires legal amendments in Korea, and it will not be easy for a weak government proposal to pass the National Assembly, where a major opposition party holds sway.

The Ministry of Employment and Labor plans to create and announce a government legislative direction for union reform as early as January next year. With the determination that this is the first and last time, it must present strong and effective measures befitting an advanced country. If opposition from unions and opposition parties is severe, public opinion should be used as momentum. According to a recent survey by the Korea Public Opinion Reputation Institute, 70% of respondents supported strengthening the transparency of KCTU's accounting. At the starting point of labor reform, which has repeatedly failed over the past 30 years due to union pressure, it is hoped that the government will not repeat the past again.

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