"Burden of Weekly Holiday Allowances Leads to 'Split Hiring'... Gangwon Small Business Owners Appeal"

Forum: "Finding Answers to the Gangwon Regional Economy from the Field"

The Federation of Small and Medium Business met with small business owners in the Gangwon region to listen to their concerns regarding the expansion of the Labor Standards Act and the burden of weekly holiday allowances, and to discuss possible support measures.

On the 9th, the Korea Federation of Micro Enterprises held a meeting titled 'Finding Answers for the Gangwon Regional Economy On-site' together with the Gangwon Micro Enterprises Federation at the Gangwon-do Economic Promotion Agency in Wonju, Gangwon Province. Micro Enterprises Federation

On July 10, the Federation of Small and Medium Business announced that it had held a forum titled "Finding Answers to the Gangwon Regional Economy from the Field" at the Gangwon Economic Promotion Agency in Wonju, Gangwon Province, together with the Gangwon Province Federation of Small and Medium Business.

This forum was organized to reflect the opinions of small business owners in the Gangwon area, who are facing difficulties due to population decline and a weak industrial structure, in policymaking, as well as to share the five major policy demands announced at last month's "National Federation of Small Business Owners Resolution Rally" with local organizations. The event was attended by Song Chiyoung, Chairman of the Federation of Small and Medium Business, Lee Geuksang, Chairman of the Gangwon Province branch, and 13 local branch heads from cities and counties across the province.

On the day of the forum, local branch heads in Gangwon pointed out that uniform regulations, which do not take into account regional characteristics, are increasing the management burden on small business owners. In particular, they argued that, since 75-77% of all businesses in Gangwon Province are small operations with fewer than five employees, the expansion of the Labor Standards Act would force small business owners in remote and rural areas to shoulder excessive labor costs and regulations, potentially driving them into "one-person management."

It was also pointed out that, due to the region's high dependence on seasonal tourism demand, there are many ultra-short-term workers who work less than 15 hours per week. Nevertheless, the burden of weekly holiday allowances is causing a rise in "split hiring" practices. Additionally, due to the lack of rights to organize and bargain collectively in response to commission hikes by delivery and lodging platforms, small lodging and food service providers are suffering increasing damages.

The Gangwon Province Federation of Small and Medium Business delivered five region-specific policy proposals to the central federation, requesting that these be passed on to the National Assembly, the government, and local governments. The proposals included: expanding the Gangwon-style on-site support manager system for small businesses and increasing the number of Onnuri voucher affiliates; establishing branch offices of major promotion agencies in Yeongdong areas such as Gangneung; and attracting the National Small Business and Traditional Market Training Center to Taebaek.

Chairman Song stated, "Gangwon region faces a heavy logistics cost burden due to its vast living area and underdeveloped infrastructure, and is significantly affected by high oil prices and rising energy costs. We will consolidate the suggestions raised on the ground and actively communicate them to the government, the National Assembly, and the Ministry of Employment and Labor, striving to establish practical support measures."

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