Moon's economic adviser pursues balancing role

The Korea Times

The Korea Times

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Sat, December 9, 2023 | 23:51

Politics

Moon's economic adviser pursues balancing role

Posted : 2018-10-24 16:12

Updated : 2018-10-24 17:28

Kim Hyun-chul, President Moon Jae-in's economic adviser, answers questions in a recent forum held in downtown Seoul. Korea Times file

By Kim Yoo-chul

A presidential economic adviser believes Cheong Wa Dae needs wider cooperation from the business sector to counter the country's unemployment crisis and economic polarization as inequality deepens.

After the government's recent decision to cut its jobs outlook, forecasting the South Korean economy may add only 180,000 jobs this year from an earlier projection of 320,000, presidential adviser Kim Hyun-chul sees the need to adjust the 52-hour work week system.

"Since the country implemented a new 52-hour work week from July this year, there have been lots of concerns," Kim said. "The system needs adjustments to make it work properly."

The adviser was speaking during a press briefing at the presidential office, Tuesday, after returning home with President Moon Jae-in from the South Korean leader's nine-day European trip.

Citing the weakening job market and growing difficulties for the government to push forward Moon's economic growth agenda of relaxing regulations and encouraging private firms to invest more in businesses that were previously untouched, Kim said he will have to take on a greater role to explore measures to "soft-land" the new working-hour system.

Kim is one of the first senior Cheong Wa Dae officials to be vocal about better communication with private companies to keep the momentum of the new working-hour system alive.

South Korea said the system aims to promote a greater work-life balance by cutting the maximum hours people can work from 68 to 40, plus another 12 hours of overtime. Smaller firms won't need to make changes until 2020.

Moon was hoping the new system would increase jobs, productivity and birthrates as Asia's fourth largest economy had one of the longest work weeks among OECD countries. The long hours could be why the country also has one of the lowest birthrates, according to economists and analysts.

Being forced to soften the rollout of the policy indicates how much the initiative was driven by the government, rather than workers themselves that rely on overtime to earn enough money.

Kim said he is prepared for open debate with representatives of labor groups to find a "middle ground" to make the system work.

"Businesses are claiming that the new working-hour system is undermining their competitiveness, while workers are not supportive of the system as it may result in reduced income," Kim said.

yckim@koreatimes.co.kr