President Lee Jae-myung on the 16th publicly asked corporations to make "new youth hires" to address the decline in employment rates among young people. Noting in particular that recent hiring has leaned toward experienced recruitment or multi-tier subcontracting, he said the government would also consider support for corporations, especially in the provinces, that move to hire young entry-level workers.
Presiding over a Cabinet meeting at the Government Complex Sejong that day, Lee said, "Today, I would like to make a special request to corporations," adding, "Just as it takes a whole village to raise a child, solving youth employment issues requires efforts not only from the government but also from corporations."
He went on, "The government is doing its best to support smooth corporate activity," and added, "I ask that our corporations, which are overcoming trade headwinds with the government under the 'Team Korea' spirit, also join forces with the government to get past another hurdle called the 'youth employment crunch.'" He continued, "Creating new jobs for young people is absolutely necessary," and "I earnestly ask that we open a new channel for economic growth in which youth, corporations, and the nation all 'win-win.'"
At the ministry level, a proposal also emerged to expand incentives for corporations that employ young people. Environment Minister Kim Seong-hwan said, "Since the foreign exchange crisis, large corporations in the provinces, such as Hyundai Motor, HD Hyundai, and Hanwha Ocean, have hardly hired full-time employees and have handed almost all needed manpower to subcontractors and sub-subcontractors," adding, "When Hyundai Motor for the first time in years hired full-time workers in Ulsan a few years ago, the result was employment (of new hires) through competition of more than 100 to 1."
Citing Hyundai Heavy Industries, HD Hyundai, and Hanwha Ocean, the Minister said, "If these large corporations in the provinces hire full-time workers instead of relying on subcontracting and sub-subcontracting, it is primarily necessary to provide additional tax benefits for that. (To create jobs,) how about starting with what is easier?"
President Lee said, "A good point," adding, "In the past, we recruited good talent and trained them, but these days they (corporations) do not provide training and simply hire experienced workers who have rolled around in tough places, suffered, and built up capabilities. There are rational aspects, but on the other hand there are harsh aspects as well." He continued, "This time, by asking corporations, we plan to try hiring young entry-level workers," and added, "Goodwill alone is not enough. We need to make support or benefits possible."