Moon administration policy is reaching its limits
Labor disputes have become more serious at some Korean companies, including Renault Samsung Motors. In particular, the case of Renault Samsung Motors is serious. The labor side did not break the position of total confrontation, and the administrative side has a tough stance and the conflict is escalating. Due to the global shortage of semiconductors, automobile production is declining, and there is concern that the company’s business performance will deteriorate significantly.
Photo = EPA / Jiji Press Photo
South Korean President Moon Jae-in speaks at the virtual climate leaders summit “Earth Day” hosted by US President Joe Biden = April 22, 2021
The Korean Trade Union appears to be placing more emphasis on strengthening vested interests in the near future. Behind this lies President Moon Jae-in’s policy toward the trade union, which is an important support base, such as raising the minimum wage. As a result of the sharp dispute between business and management, some investors have begun to worry about the business management system in Korean companies in the medium to long term. It may be rephrased as an end to the Moon administration’s economic policy.
Meanwhile, leading IT companies such as Samsung Electronics are creating a more stable supply chain by strengthening relationships with Japanese material manufacturers who demonstrate global competitiveness. In response, Japanese material manufacturers are trying to strengthen South Korea’s production system. In the Korean economy, the difference between companies with no union problems and those without union problems appears to be gradually widening. It will have a major impact on the strength of the Korean economy in the medium to long term.
He finally proposes to withdraw from South Korea
In South Korea under Moon’s administration, labor disputes intensified, which had a major impact on the management of some companies. The situation appears to be accelerating.
For example, the labor dispute of Renault Samsung Motors has become more serious. In February, the French Renault management said: “If we cannot improve productivity in South Korea, we will look for alternatives.” It is a warning that if the labor dispute does not stop, he will seriously consider withdrawing from South Korea. Trade union demands hampered the efficiency of companies’ business operations.
However, Renault Samsung workers’ unions continue to demand that management raise their base salaries. In May, the union went on strike. The boundaries of the Moon administration’s economic policy should be that of trade union support. Even at Kia, a car maker whose commercial performance is recovering, the union is calling for higher wages and an increase in the retirement age. Even at Hyundai Heavy Industries, a major shipbuilder, it is difficult for workers and management to collaborate.