Chairman Son Kyung-sik: "Labor Reform, Essential Task for Korea's Economic Leap"

Son Kyung-sik, Chairman of the Korea Employers Federation
Keynote Speech at the 2nd Korea CEO Forum
Emphasizes the Need for Rigorous Labor Reform
Also Calls for Re-discussion on Re-legislation of the Postponement of the Serious Accident Punishment Act Enforcement

Son Kyung-sik, Chairman of the Korea Employers Federation, emphasized that strong labor reforms must be supported for the South Korean economy to make a leap forward. He stated that regulations in the labor sector, which forms the foundation of companies, must be innovated to increase corporate vitality and create a virtuous cycle of economic development.

Chairman Son made these remarks at the "2nd Korea CEO Forum" held on the 1st at the Westin Chosun Hotel in Jung-gu, Seoul. He stressed, "This year, all policy efforts should be focused on swiftly implementing institutional improvements that enhance labor market flexibility and balance the power between labor and management through strong labor reforms."

Chairman Son pointed out that due to South Korea's rigid regulations on dismissal and working hours, it is difficult to respond quickly to new business changes. He also mentioned that the wage system should be restructured from a seniority-based system, where wages increase with years of service, to a system centered on job roles and performance. His views align with the government's reform direction, which promotes labor reforms based on the rule of law.

Chairman Son emphasized, "Our companies must be able to compete on an equal footing with foreign companies in the global market," adding, "By improving systems in various fields, including the labor market, and increasing corporate vitality, our economy can make a leap forward."

Son Kyung-sik, Chairman of the Korea Employers Federation, is delivering the keynote speech at the Korea CEO Forum on the 1st.
[Photo by Korea Employers Federation]

On the same day, Chairman Son also mentioned the postponement of the enforcement of the Serious Accident Punishment Act for workplaces with fewer than 50 employees, which is currently under last-minute negotiations in the National Assembly. He urged, "I hope the National Assembly will reconsider extending the postponement of the application of the Serious Accident Punishment Act for small and medium-sized enterprises that are still unprepared."

Chairman Son did not relent in his claim that "South Korea's corporate and inheritance tax rates are excessively high on a global scale." He criticized, "This negatively affects the willingness to manage companies, as well as investment and job creation." He added, "To enhance the competitiveness of our companies and the nation, the tax system, including the highest rates and taxation methods for corporate and inheritance taxes, must be promptly improved to meet international standards."

Meanwhile, following Chairman Son's keynote speech at the event, Lee Chang-yong, Governor of the Bank of Korea, delivered a keynote lecture. Governor Lee presented forecasts on inflation, economic conditions, and monetary policy for this year. On the 2nd, Seoul Mayor Oh Se-hoon will continue the keynote lectures, presenting Seoul's vision for creating a business-friendly environment.

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