Labor Reforms: Let's Put People To Work

President Park Geun-hye has publicly announced her plans to move the

economy forward in South Korea during the second half of 2015. The

most important issue at the top of her state agenda is to deal with

labor reform in order to revive the sluggish economy. She has vowed to

push through this issue to reduce youth unemployment. The current

extension of the retirement age and the companies' unwillingness to

introduce a peak wage system causes difficulty in employment for

young adults. To prevent this issue from growing, a wage peak system

for all public offices will be implemented within this year. It would offer

job security, but gradually reduce the salaries of older employees after

they reach a certain age. These efforts will eventually lead to a

stronger economic growth and more jobs for the future generation. This

week the Newstellers panel will discuss this reform plan in more depth

and the problems that may arise.