Ministry of Employment and Labor Signs Win-Win Agreement With Jeju Hotels and Partner Firms... Narrowing Wage Gaps and Expanding Benefits

First Application in the Service Sector Beyond Manufacturing
Government and Primary Contractors Establish 1.2 Billion Won Fund

The hotel and resort industry in Jeju, which has long struggled with chronic short tenures and disparities in employee conditions, is now embarking on structural improvement through win-win partnerships between primary contractors and subcontractors. As the government, local authorities, and primary hotel operators join forces to support the long-term retention of partner company employees, the win-win model—once centered mainly on manufacturing—has now been expanded into the service sector.

Kim Younghoon, Minister of Employment and Labor, is speaking at the "Gangwon-Cement Industry Win-Win Cooperation Expansion Agreement Ceremony" held on July 23 at the Chuncheon Sejong Hotel in Gangwon Province. Ministry of Employment and Labor.

On September 4, the Ministry of Employment and Labor signed an agreement at Jeju Dream Tower with Jeju Special Self-Governing Province, major hotel and resort operating primary contractors in the region, and partner companies to promote win-win cooperation in the Jeju hotel and resort sector. The event was attended by Kim Young-hoon, Minister of Employment and Labor; Wi Sung-gon, Governor of Jeju Special Self-Governing Province; Baek Hyun, CEO of Lotte Tour Development; Tigo Yung, CEO of Jeju Shinhwa World; and Kim Joonhwan, Vice President of Hotel Shilla. Representing the partner companies were Choe Nakjin, CEO of AMPM; Lee Jeonggeun, CEO of SGAQUMEN; and Ok Seongryun, Head of the Jeju Branch of S-TECHSYSTEM.

The hotel and resort industry relies on partner companies for a significant portion of core services, including room housekeeping, facility management, security, parking, and cleaning. However, persistent criticism has been raised regarding the difficulty of building expertise, given the short tenures and high employee turnover. This agreement focuses on easing wage disparities and supporting the long-term employment of partner company workers based on their tenure. The Ministry of Employment and Labor, Jeju Province, and the primary contractors have pledged to establish a win-win fund of 1.22 billion won, aiming to create stable working conditions for on-site personnel.

Primary contractors will share best practices in HR and welfare with partner companies and gather feedback from the field to help build safer working environments. Jeju Province and the Ministry of Employment and Labor will also run programs such as vacation subsidies for workers, thereby expanding welfare benefits. This agreement marks the Ministry’s sixth regional model, following previous initiatives in aerospace in Gyeongnam, food in Chungbuk, and petrochemicals in Incheon.

Minister Kim Young-hoon stated, "This is the result of our efforts to improve working conditions and welfare for the partner company workers who have supported the field," adding, "We will devote our policy resources to ensure more companies participate." Governor Wi Sung-gon remarked, "This will serve as an opportunity to narrow the gap between primary contractors and subcontractors and enhance the competitiveness of Jeju’s tourism sector. We will monitor the win-win council to ensure continual progress and change."

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