Published : Sept. 2, 2013 - 21:20
Top business leaders expressed concerns over an indecisive government’s stance on the definition of ordinary wages and overly strict environment regulations.
“Over the past decades, businesses have abided by the government rules on regular wages. However, the government now says it will wait for the decision of the Supreme Court on what constitutes the wage,” said Kim Young-vae, vice chairman of the Korea Employers Federation. “(The government’s act) must have caused a legal dispute if it was done by a private firm,” Kim said.
Trade, Industry and Energy Minister Yoon Sang-jick held the second meeting Monday for beefing up the nation’s economic health with representatives from five major business associations including the Korea Chamber of Commerce and Industry, the Federation of Korean Industries and the Korea International Trade Association. The first meeting was held last month.
The talks between Minister Yoon and business heads revolved around recent disputes on what constitutes an ordinary wage and also strict environmental regulations that the government has pushed for after a streak of chemical leaks and its consequent human casualties at factory sites.
Industry Minister Yoon Sang-jick (third from right) and leaders of business organizations including Park Yong-maan (fourth from right), chairman of Korea Chamber of Commerce and Industry, and Han Duck-soo (second from right), chairman of the Korea International Trade Association, pose before holding talks on strengthening the nation’s industrial sectors at a hotel in Seoul on Monday. ( Yonhap News)
Private companies may have to pay at least 38 trillion won when the courts acknowledge regular bonuses as part of the ordinary wages, according to the KEF. In March, the Supreme Court ruled regular quarterly bonuses to be a part of regular wages.
Business group representatives such as the Korea Chamber of Commerce and Federation of Korean Industries have been at odds with the Park Geun-hye government for some time over some of the more stringent rules Park sought to introduce for conglomerates to help promote fair competition in corporate Korea.
“Companies, rules on corporations as well as workers are competing with governments and economic players around the world. The government has to avoid straying from global standards,” said Han Duck-soo, chairman of KITA.
The business leaders asked the ministry to ease regulations which will require firms from 2015 to use all-new chemical substances in businesses registered with the authorities, which in consequence would raise costs per business by at least 70 million won.
“Harsh rules will deal a big blow to exporters since the firms would lose competitiveness against foreign firms,” the five associations said in a joint statement.
The business sector also reminded the government of its plans to invest up to 37 trillion won to pitch into state-run schemes for bolstering smaller companies.
By Kim Young-won (
wone0102@heraldcorp.com)