The Korea Federation of Micro Enterprise (KFME) met with Minister Kim Young-hoon of the Ministry of Employment and Labor (MOEL) and expressed concerns about expanding the application of the Labor Standards Act to microbusinesses and shortening working hours. The Lee Jae-myung administration is pushing measures to shorten working hours, including a "4.5-day workweek," and to expand the law to business sites with fewer than five employees, which are not currently covered by the Labor Standards Act.
The labor ministry said on the 26th that Minister Kim held his first meeting with the Korea Federation of Micro Enterprise (KFME) since taking office. Attending were Federation Chair Song Chi-hyung, Vice Chair Moon Kwe-chul, and Convenience Store Franchise Association Chair Gye Sang-hyuk.
The federation conveyed recommendations, including concerns about labor policies pursued by the government and the application of a sector-specific minimum wage. Microbusiness owners have argued that a differentiated minimum wage by industry is necessary to reduce labor costs.
Chair Song said, "If the application of the Labor Standards Act is expanded while leaving the current weekly holiday allowance system intact, it will increase the burden on small microbusiness owners to the point that it is tantamount to declaring closure," and added, "The minimum wage system, which has risen without a single exception for 38 years, also urgently needs a fundamental overhaul so that the voices of microbusiness owners, the direct stakeholders, are better reflected."
Minister Kim said, "We will start with 'what must be done and what can be done' after fully examining the management and labor administration conditions and difficulties of microbusiness owners, and, together with related ministries such as the Ministry of SMEs and Startups, we will also seek comprehensive support measures to strengthen the growth and competitiveness of microbusiness owners," adding, "We will regularly create opportunities to hear the opinions of microbusiness owners."
Meanwhile, the Korea Federation of Micro Enterprise (KFME) is a statutory economic organization that protects and represents the rights and interests of microbusiness owners. It consists of small merchants with business sites with fewer than five employees and small manufacturers with business sites with fewer than 10 employees. The 7.9 million microbusiness business sites account for 95.1% of all corporations, and the number of related workers accounts for 45.9% of all corporations.