Deputy Prime Minister Lee’s Concern, "Fundraising for Contribution towards Society to be a Burden on the Market"

The minister of Finance and Economy, Lee Heon-jae, expressed a pessimistic view in relation with companies’ fund raising for contribution towards society asked by the labor world recently on May 21 saying, “It is a heavy burden on each other to promote what a market does not accept naturally.”

Lee said so in a regular press conference this day to the question, “How does he think about companies’ raising funds for contribution towards society which the Minister of Labor Kim Dae-hwan made clear of his will of referring it to the public opinion?”

He stated, “I do not object to the principles that all problems should be solved through dialogue and compromise, but there can be a side effect which the society cannot accept.”

The Korean Employers Federation (KEF) urged the ceasing of requests for fundraising as it is not a subjected to negotiations for wages and a labor pact, and also expressed its concern on the responding movement of some people in the government.

The KEF, in a statement, insisted, “There is a high possibility of causing the Korean economy to decline on a large scale if the burden of companies increases by introducing funds for contribution towards society whose characteristic is a quasi-tax because it will lead to reduced investment and lowered foreign confidence.”

Subsequently, the KEF criticized, “The labor world’s claim is dubious about the intention of fund raising as it claims that they would fight intensively if the fund does not become a subject of negotiation and if the management does not agree with this.”

In relation with the statement of Kim, it also said, “We are very sorry that the government’s statement led to a misunderstanding of referring this issue of fundraising for the contribution towards society to public opinion.”

The KEF claimed, “It is obviously a shifting of responsibility of this matter on the employers’ unilateral burden when they say they will give better treatment of part-timers and prepare a way of securing employment through the fundraising.”

Jong sik Kong Wi-Yong Jung kong@donga.com viyonz@donga.com