Government’s Labor Policy

Government to strengthen policies to create, maintain and improve jobs

The government plans to carry out an active employment policies to realize a 70% employment-to-population ratio and ‘70% middle class’, and strengthen social dialogue to establish a Korean model of labor-management cooperation. Furthermore, the government is planning to ask for the support of employers’ and workers’ organizations to follow the ‘Job Roadmap’ to be announced in late May, which gathers job policies from various government departments.

Meanwhile, the newly-appointed Minister of Employment & Labor, Mr. Phang Ha Nam visited the FKTU (March 12), the KEF (March 13) and the KCTU (March 26) to ask for their active support for job creation. During his visit to the KEF, Mr. Phang asked the employers to participate in establishing win-win labor relations and a virtuous circle of growth-employment-welfare. Mr. Phang also asked the employers to put effort into creating jobs and resolving discrimination against non-regular workers. Mr. Lee Hee-beom, Chairman of the KEF, emphasized that independence in labor relations needs to be respected in order to realize an employment-to-population ratio of 70%. Further, he also emphasized the importance of observing the law and principles.


<Table 1> MOEL Policy on Work Hour Reduction

Revision of Law
ㆍIncluding work on holidays in ‘extended work’ (apply to companies in stages according to company scale)
ㆍNarrow list of exempted sectors (26 sectors → 10 sectors)
Labor Inspections
ㆍConduct regular labor inspections of car, metal, food and service industries.


In addition, the government is expected to carry out labor policies that improve protection for non-regular workers against discrimination and create jobs through work hour reductions. Revision of laws on non-regular and in-house subcontract workers and working hours is expected to be carried out within the first half of the year, along with more intensive labor inspections.

In 2012, the government conducted regular inspections over 522 firms and special labor inspections on 140 firms. Based on their findings, the government issued orders for corrective action to 124 firms and fined 100 firms a total of KRW 2.5 billion.

Furthermore, the government is expected to conduct legislation on work hour reduction based on ‘Working Hour Trends in 2012’ announced in February, this year.


<Table 2> Annual Working Hour Trend

(Unit: hours)

Year
2008
2009
2010
2011
2012
Average working hours/year
2,120
2,113
2,120
2,116
2,092
Source: MOEL

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