Insurance industry pushes back against labor law overhaul
Opposition is emerging from both the insurance industry and insurance agents as the government moves to revise labor laws to incorporate special employment workers and freelancers into the formal employment framework, industry officials said Tuesday. Under the proposed system, around 650,000 insurance agents in Korea could be classified as statutory employees, making them subject to mandatory provisions of the Labor Standards Act, including severance pay. The resulting financial burden on insurers is expected to be several trillion won. Insurance agents, who have traditionally been treated as special employment workers — self-employed contractors — are also concerned that reclassification as employees could ultimately lead to a decline in their take-home earnings. The government and the ruling Democratic Party of Korea are advancing a legislative package that includes the “worker presumption rule” and a basic act governing working people’s rights. The related bills are expected to clear the legislative process around May 1, which is Labor Day. Among the proposed measures, the i
