Small Business Community: "Expanding the Labor Standards Act Is Tantamount to a 'Declaration of Closure'"

Need for Reform of the Minimum Wage System Also Emphasized

The small business community has expressed concerns about the plan to expand the application of the Labor Standards Act while keeping the current weekly holiday allowance system unchanged.

(Fifth from the left) Song Chiyoung, President of the Federation of Small and Medium Business, and (fourth from the left) Kim Younghoon, Minister of Employment and Labor, are meeting at a restaurant in Jongno-gu, Seoul on the 26th and taking a commemorative photo. Federation of Small and Medium Business

On the 26th, the Federation of Small and Medium Business announced that it held a luncheon meeting with Kim Younghoon, Minister of Employment and Labor, at a restaurant in Jongno-gu, Seoul, where it conveyed the opinions of the small business sector on labor issues.

In his opening remarks, Song Chiyoung, President of the Federation, stated, "With the National Planning Committee announcing its intention to gradually and uniformly apply the Labor Standards Act to workplaces with fewer than five employees by 2027, small business owners are feeling significant anxiety. As the Constitutional Court has twice ruled the current system constitutional, the practical difficulties faced by small businesses with fewer than five employees must be taken into full consideration."

He continued, "If the application of the Labor Standards Act is expanded while keeping the current weekly holiday allowance system unchanged, it will impose unbearable economic and administrative burdens on small business owners, which is tantamount to a 'declaration of closure.' The minimum wage system, which has only ever increased for 38 consecutive years, also desperately needs fundamental reform so that the voices of small business owners, who are directly affected by the minimum wage, are more directly reflected."

In response, Minister Kim stated, "In the process of pursuing policies to create a society that respects labor and where everyone can work happily, we must not shift the burden onto small business owners, who are also workers. We will thoroughly examine the management and labor conditions of small businesses, and begin with what must and can be done, while seeking comprehensive support measures in cooperation with the Ministry of SMEs and Startups and other relevant agencies." He added, "We will continue to provide opportunities to listen to the opinions of small business owners and will pay close attention to the voices of small business owners and self-employed individuals as we address labor issues."

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