South Korea Labor Minister Says Big-Business Profit-Sharing Proposal Reflects Lee Kun-hee's Teachings

Kim Young-hoon, South Korea's labor minister, said on May 29 that his proposal to share excess profits at large companies is not about "cutting open the goose," but a shared-growth plan aimed at easing polarization and strengthening corporate competitiveness.

Speaking on YouTube program "OhmyTV Park Jung-ho's Hotspot" that day, Kim pushed back against criticism that the proposal was communist. "People say talking about sharing excess profits is communism, but how is social dialogue communism?" he said.

Kim cited Samsung Electronics' Overall Performance Incentive, or OPI, program. The question, he said, is whether that kind of performance-sharing should remain limited to regular employees and primary contractors.

He also referred to the late Samsung Electronics Chairman Lee Kun-hee, who said suppliers were "another family" and part of the family. Kim said he was not the first to raise the idea that partner companies should prosper together, calling it part of the former chairman's teachings.

Kim said that if workers at suppliers take greater pride in their jobs, the quality of supplied goods will improve, raising the quality of the final products made by the main contractor.

He also rebutted criticism from the People Power Party, South Korea's main conservative party, which described the proposal as "cutting open the goose." "This proposal is not about cutting open the goose. It is about creating a bigger goose, and another goose," he said. Kim added that he did not understand why calling for social dialogue would be seen as conflicting with the spirit of the constitution.

At a May 27 meeting with reporters, Kim said social dialogue was needed on the social distribution of excess profits at large companies. The Ministry of Employment and Labor said it will soon finalize and announce the schedule for an emergency forum on the issue.

Han Kyung-woo, Hankyung.com reporter, case@hankyung.com