"Too Late After Laws Take Effect"... KCCI Urges Mid-Sized Companies to Take Preemptive Action on Labor Risks

KCCI Holds 31st Mid-Sized Business Committee Meeting
Key Issues Pile Up: Reduced Working Hours, Comprehensive Wage System, and More

With institutional changes such as a reduction in working hours and tighter regulations on the comprehensive wage system expected to impact the overall employment environment this year, it has been suggested that mid-sized companies—the backbone of the Korean economy—should focus on "preemptive risk management" rather than after-the-fact crisis response. The warning is that if companies wait to formulate countermeasures only after new laws and regulations come into effect, the management risks they will have to bear could grow uncontrollably.

On June 15, at the 31st Korea Chamber of Commerce and Industry (KCCI) Mid-Sized Business Committee meeting held at the Chamber of Commerce Hall in Jung-gu, Seoul, there was an in-depth discussion to analyze the rapidly changing labor policy trends and to seek practical survival strategies for mid-sized companies.

Kim Dongwook, a professor at Korea University School of Law and keynote speaker for the day, sharply pointed out the crisis factors at the forefront of employment currently facing mid-sized companies, stating, "This year, issues such as the strict application of reduced working hours, regulations against the misuse of the comprehensive wage system, and the efficient utilization of an aging workforce due to demographic changes are intricately linked and must be addressed immediately at the management's frontline."

Professor Kim especially emphasized that the "timing" of preparations will determine whether companies succeed or fail. He warned, "The legal and managerial risks faced by companies that are passively pushed into action after new laws or systems are fully implemented will be vastly different from those that anticipate institutional changes and preemptively reorganize their internal systems." As a concrete solution for a soft landing, he urged mid-sized company executives to gradually implement fundamental and essential measures, such as proactively updating in-house work rules and thoroughly reassessing existing wage structures to address any shortcomings.

Amidst these dramatic shifts in the employment environment, a vision was also presented that global trade uncertainties, financial and tax issues, and other management challenges should instead be seized as opportunities for companies to drive innovation and transform their business structure.

Yoo Seok Jung, the new chairman of the Mid-Sized Business Committee and Vice Chairman of Shinheung Precision, stressed, "Because mid-sized companies are a pillar supporting the national economy, both in terms of employment and production, it is more important than ever to establish a solid internal foundation that can withstand turbulent management conditions."

Chairman Jung went on to say, "Although various internal and external issues are erupting simultaneously around mid-sized companies, if these changes are turned into opportunities to accelerate management advancement and business restructuring, they will serve as a crucial stepping stone for mid-sized companies to make a significant leap forward. Starting with today's discussion on how to respond to labor-related laws and systems, I will operate this committee to address the real needs of mid-sized companies and open up practical breakthroughs."

Meanwhile, the Mid-Sized Business Committee, organized by the Korea Chamber of Commerce and Industry, serves as a constant communication platform to strengthen the competitiveness of mid-sized companies and address their key issues. At the 31st meeting, more than 20 key executives and representatives of domestic mid-sized companies—including newly appointed Chairman Yoo Seok Jung, Oh Wonseok, Chairman of Korea FT, Lee Junehwan, Vice Chairman of KCTC, and Im Gakgyun, CEO of EtNus—attended and exchanged opinions.

In addition, at the meeting, several new members were appointed to help expand the scope of the mid-sized business sector, including Choi Hyunsoo, Chairman of KleanNara, Park Yongpil, CEO of Jungil, Yang Seungcheol, CEO of Topco Global, Jo Manhyeon, Chairman of Dongwoo CM, Lee Yongwon, CEO of Venice F&B, and Yoon Junchan, Director of DAGIT.

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