Some chaebol owners have avoided disclosing detailed information on their pay or compensation packages, taking advantage of regulatory loopholes.
This can no longer be tolerated as the government, workers and employers need to share the burden of reforming the labor market, an issue that will greatly affect the future of the nation.
The main opposition New Politics Alliance for Democracy (NPAD) has now declared its readiness to act on three pending bills.
We urge the ruling Saenuri Party to ensure speedy legislative action for full disclosure of information about big paychecks with no exceptions.
The current law first implemented last year as the result of the revision on the Capital Market Law, requires the total amounts paid to legally liable "registered" executives to be disclosed, while limiting individual disclosure to people who make 500 million won or more.
Three bills are pending. Two call for the mandatory individual disclosure by registered and unregistered executives, controlling shareholders and C-level executives. The third bill seeks to limit the disclosure requirement to top five wage earners. Pay by definition is the total amount one gets paid excluding the nontaxable portion.
These bills have their pros and cons but the priority lies in disclosure to the fullest extent at the earliest possible timeframe.
NPAD floor leader Lee Jong-kul was right when he said, "Some chaebol owners opted for nonregistered status so as to receive a big paycheck without being subjected to a disclosure requirement."
Big shareholders, who are involved in management in 37 conglomerates, or 16 percent of 237 opted for and maintained their unregistered status to skip the requirements for disclosure. They include the bed-ridden Samsung Electronics Chairman Lee Kun-hee, SK Chairman Chey Tae-won, Shinsegae Chairman Lee Myung-hee and Vice Chairman Chung Yong-jin. There arises a need to extend the disclosure net to those, irrespective of their status, who influence the management of a given firm, considering the case of Hanwha Chairman Kim Seung-youn, who delisted himself as executive in all subsidiaries but receives a hefty compensation package.
In the United States, those receiving large paychecks are required to reveal pertinent details.
The transparency of pay at the top is indispensable as the basis for labor market reform, which relies heavily on burden sharing. For instance, a wage peak system calls on higher-earning workers to cede part of their pay to create more jobs for young people. If the sacrifice is forced only on workers and well-paying executives stay away, the labor reform will face great difficulty in creating a consensus for success.
The National Assembly is expected to play its role by taking legislative action on the pertinent bills, which were submitted in April, with no more delays to provide a legal framework for disclosure.
This can no longer be tolerated as the government, workers and employers need to share the burden of reforming the labor market, an issue that will greatly affect the future of the nation.
The main opposition New Politics Alliance for Democracy (NPAD) has now declared its readiness to act on three pending bills.
We urge the ruling Saenuri Party to ensure speedy legislative action for full disclosure of information about big paychecks with no exceptions.
The current law first implemented last year as the result of the revision on the Capital Market Law, requires the total amounts paid to legally liable "registered" executives to be disclosed, while limiting individual disclosure to people who make 500 million won or more.
Three bills are pending. Two call for the mandatory individual disclosure by registered and unregistered executives, controlling shareholders and C-level executives. The third bill seeks to limit the disclosure requirement to top five wage earners. Pay by definition is the total amount one gets paid excluding the nontaxable portion.
These bills have their pros and cons but the priority lies in disclosure to the fullest extent at the earliest possible timeframe.
NPAD floor leader Lee Jong-kul was right when he said, "Some chaebol owners opted for nonregistered status so as to receive a big paycheck without being subjected to a disclosure requirement."
Big shareholders, who are involved in management in 37 conglomerates, or 16 percent of 237 opted for and maintained their unregistered status to skip the requirements for disclosure. They include the bed-ridden Samsung Electronics Chairman Lee Kun-hee, SK Chairman Chey Tae-won, Shinsegae Chairman Lee Myung-hee and Vice Chairman Chung Yong-jin. There arises a need to extend the disclosure net to those, irrespective of their status, who influence the management of a given firm, considering the case of Hanwha Chairman Kim Seung-youn, who delisted himself as executive in all subsidiaries but receives a hefty compensation package.
In the United States, those receiving large paychecks are required to reveal pertinent details.
The transparency of pay at the top is indispensable as the basis for labor market reform, which relies heavily on burden sharing. For instance, a wage peak system calls on higher-earning workers to cede part of their pay to create more jobs for young people. If the sacrifice is forced only on workers and well-paying executives stay away, the labor reform will face great difficulty in creating a consensus for success.
The National Assembly is expected to play its role by taking legislative action on the pertinent bills, which were submitted in April, with no more delays to provide a legal framework for disclosure.
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