Korea’s 52 labor unions to face fines for not submitting accounting documents

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More than 50 labor unions in South Korea, including 37 members of the Korean Confederation of Trade Unions (KCTU), did not comply with the government’s request to submit their accounting documents despite the one month of extended deadline.

The Ministry of Employment and Labor announced Sunday that it will impose fines on the 52 labor unions that failed to report documents related to their finances and whether or not they are equipped with the documents, which violates the country’s labor union and labor relations adjustment act.

Under the law, labor unions that do not disclose their financial documents face a fine of 1.5 million won ($1,138) and those that fail to keep and preserve the records face a fine of 1 million won.

According to the ministry, only 36.7 percent, or 120 out of the 318 labor unions submitted the records by the first deadline of Feb. 15. Documents were handed in by 146 more unions upon deadline extension. However, 52 unions refused the final call, including 37 members of the KCTU, 8 members of the Federation of Korean Trade Unions (FKTU), and 7 groups without any affiliation.

The ministry plans to impose the fines on the labor unions and also carry out an on-site inspection on the violators later this month to confirm whether they are preserving their account books

Labor unions will be charged with penalties if they reject or disrupt the inspection. Members of unions also can be charged with obstruction of justice if they threaten the inspectors with the use of violence or force.

“We will take strict action against the unions that attempt to abuse public distrust,” said Labor Minister Lee Jung-sik.

The KCTU and FKTU, Korea’s two largest labor unions, in the meantime, denounced the government’s measures to improve audit transparency of labor unions, claiming that they suppress the labor community. The unions said they plan to take legal steps against the fines.