Korea’s largest labor groups excluded from receiving state subsidies this year

[Photo by MK DB]

South Korea’s two major labor umbrella groups, the Federation of Korean Trade Unions (FKTU) and the Korean Confederation of Trade Unions (KCTU), will not be eligible to receive state subsidies as they refused to submit their accounting books as requested by the government as part of a reform to boost transparency.

According to the Ministry of Employment and Labor on Tuesday, FKTU has been eliminated from the government’s project in the first round to receive aid this year. The ministry told the union group on Friday that “it has not been selected as an operator subject to subsidies” after having reviewed its application.

The ministry selects labor unions and non-profit organizations every year and provides them with state subsidies in the name of promoting cooperation and prosperity between labor and management.

The government set aside 4.5 billion won ($3.4 million) for union groups and 1.1 billion won for non-profit organizations this year. The FKTU received 2.6 billion won from the government every year to support its operations.

The elimination comes after the labor ministry in February announced that it will rule out labor organizations that lack accounting transparency from being selected as recipients of state subsidy programs. The FKTU and KCTU refused to open their books, saying that the demand infringes their rights.

The labor ministry, however, selected six branches under the FKTU, including those related to housework and care service and platform drivers, as subjects for state subsidies as they submitted their accounting documents.

They are among the 23 labor unions that have been selected in the first round of government recruitment, which also include two union groups under the KCTU.

The labor ministry, in the meantime, plans to complete its investigation into the 47 labor unions that do not submit their accounting documents by Thursday. Most of the unions have not supported the on-site investigation. The labor ministry plans to take legal action against those that refuse to cooperate with the government’s inspection next week.