‘The 5 Working Days a Week is Just ahead of Us”

The foreign companies in Korea object to the policy that regulates 5 working days a week by law and they are urging to reform the vacation system if the Korean government wants this policy activated.

The managers of foreign invested companies urged in the Federation of Korean Industries International Corporations Committee meeting on the 20th, “the 5 working days a week is not to be regulated by the law but individual companies induce freely.”

They also urged that in order to activate this policy, the absurd vacation system should be reformed, the premium rate for overtime should be lowered to the international standards, and flexible working hour system should be expanded.

They pointed out that, in addition to this, △alleviation of regulation for dispatch of workers (removal of the dispatch period limit, expansion of object industries) △alleviation of layoff system △ reducing of indirect labor fee should be needed.

They said, “the demand of right for dividend by some labor unions is a very dangerous idea that can break the foundation of the capitalism,” and they insisted, “If that claim is accepted, no foreign company will invest on Korea.”

The presidents of major foreign companies in Korea such as the Chairman of the Federation of Korean Industries International Corporations Committee, Choi Jun-keun, the president of Hewlett Packard Korea and Dietrich Hanstein, the president of BASF Korea, Yoon Moon-seok, the president of Oracle Korea were attended the meeting.

In the mean time, the Korea Foreign Trade Association presumed that the trade loan interest sharing of exporting companies would be extended by 3 billion won annually since banks are closing on Saturdays starting July 1st.

The Korea Foreign Trade Association, therefore, submitted a proposal to the Financial Supervisory Board and the Bank Association requesting that the export check cashing should be continued on Saturdays in July at least.

The Korea Foreign Trade Association insisted, “banks should not collect interests or postponed at least because there will be additional interests because of closing on Saturdays.”

Yeon-Su Shin Kwang-Hyun Kim ysshin@donga.com kkh@donga.com