As Demand for Industrial Accident and Labor Law Violation Inspections Grows... Labor Inspection Budget Cut by KRW 12.4 Billion [A Closer Look at the Labor Budget (5): Final]

Labor inspection budget cut by 22.8%

Support for delegation to local governments up by only KRW 2 billion

Concerns over regional disparities in inspection capacity must be addressed

As demand grows for responses to fatal industrial accidents and inspections into violations of labor laws, the government has cut next year's budget for labor inspections by more than KRW 12 billion. Although the budget for delegating labor inspection authority to local governments increased as the delegation expanded, the actual increase was only KRW 2 billion. With the allocation of standard staffing levels for each local government still unfinished, concerns are mounting over whether they can adequately secure the personnel, expertise and field response systems needed before the authority is transferred.

On the 8th, workers move around a construction site in Jangwi-dong, Seongbuk-gu, Seoul, as an ongoing heat wave continues. Photo by Cho Yongjun jun21

According to the National Assembly Budget Office's report, "Analysis of the 2027 Budget Proposal by Committee," released on November 11, the Ministry of Employment and Labor allocated KRW 42.053 billion for its Labor Inspection Capacity-Building Program next year. This is KRW 12.4 billion, or 22.8%, less than this year's KRW 54.453 billion. Labor inspectors are special judicial police officers who routinely receive and investigate cases involving violations of 19 labor-related laws, including the Labor Standards Act and the Occupational Safety and Health Act. The government cited a smaller planned increase in the number of labor inspectors as the reason for the cut. The authorized number of inspectors rose from 3,131 in 2024 to 5,131 as of August this year. A government official explained, "As the planned increase in the number of inspectors is being scaled back next year, infrastructure costs, such as office rental expenses, have decreased."

By contrast, the budget for delegating labor inspection authority to local governments has more than tripled, but the actual increase is only KRW 2.04 billion. Under the Act on the Exercise of Duties of Labor Inspectors, enacted in April this year, local governments newly assigned inspection duties must recruit inspectors and provide specialized training, as well as establish systems for field investigations and responding to complaints. The government plans to provide newly hired local inspectors with eight weeks of training and develop a system exclusively for local governments next year. However, given the costs of staffing, training and building information systems, it is unclear whether the increased budget will be sufficient. Critics say that differences in local governments' finances and administrative capacity could lead to disparities in the level of worker protection across regions, depending on the support provided by the central government.

There are also calls for caution about the delegation approach itself. The National Assembly Budget Office cited concerns that labor inspection duties are central government affairs under Article 15 of the Local Autonomy Act and may therefore be difficult for local governments to perform. Some argue, citing International Labour Organization (ILO) Convention No. 81 and Recommendation No. 20, that labor inspections should be administered directly by the central government. They warn that differences in inspection capacity among regions could result in varying responses to the same legal violation. However, because it has not been conclusively determined whether delegation to local governments violates the Local Autonomy Act or ILO conventions, the legal issues also require close examination.

The Ministry of the Interior and Safety is currently preparing a plan to allocate standard staffing levels for each local government. The National Assembly Budget Office said that the roles and responsibilities of the central and local governments should be clearly defined as the number of inspectors, scope of duties, and standards for training and job performance are specified. It concluded, "The central government must establish support and coordination systems not merely to transfer authority to local governments, but also to reduce disparities in inspection capacity among regions and ensure consistent labor inspections nationwide." Kwon Changjun, Vice Minister of Employment and Labor, also urged regional labor offices to provide full support, including advice, training and mentoring, to help local governments establish new departments and build infrastructure.

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