FKTU to disclose spending records for public view

Under the government’s changed decree on the Trade Union Act and the Income Tax Act, which took effect this month, the labor union has to record its settlement within two months after the fiscal year ends.

Federation of Korean Trade Unions hold a protest in August. [YONHAP]

One of the two biggest umbrella labor unions in Korea has decided to accept the government’s request to disclose its spending records.

The Federation of Korean Trade Unions (FKTU) on Monday said it will register its spending records on the government accounting notification system.

Under the government’s changed decree on the Trade Union Act and the Income Tax Act, which took effect this month, the labor union has to record its settlement within two months after the fiscal year ends.

The labor union has to make the fiscal year’s settlement public for all of its union members to see by April 30.

While it is not mandatory, the labor union cannot get a tax credit otherwise.

The disclosure not only includes the main labor organization but even affiliated organization that receives funding from the umbrella organization.

Even if the affiliated organization does not disclose its accounting settlements, the umbrella union organization will be stripped of its tax credits.

The labor union said while it was complying to the government’s request so that the affiliated organizations wouldn’t face disadvantages, it plans to fight the issue at the constitutional court.

The other umbrella union, the Korean Confederation of Trade Unions, is expected to decide on Tuesday.

President Yoon Suk Yeol has been demanding more accountability of the labor organizations, which have been receiving funding covered by taxes.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]