Park renews calls for reform of labor market, civil service pensions

SEOUL, March 31 (Yonhap) -- President Park Geun-hye on Tuesday pressed again a tripartite committee to produce a deal meant to reform South Korea's rigid labor market amid a looming deadline.

The end of March is the deadline set by the committee composed of officials of labor, management and the government to come up with a compromise deal to overhaul such labor issues as labor market duality -- the difference in pay and job security between regular and non-regular workers.

Park urged the committee members to make concessions to produce a deal, saying in a Cabinet meeting that this could be the last chance to reform the labor market for future generations.

Park's latest appeal comes as young South Koreans are struggling to find jobs as some companies shun recruitment and instead rely on non-regular workers that they can fire more easily.

The unemployment rate for young people is nearly three times as high as the overall jobless rate in South Korea as the country entered a period of sluggish growth.

The unemployment rate for people between 15 and 29 stood at 11.1 percent in February, compared with the overall jobless rate of 4.6 percent in the same month. The overall jobless rate has reached its highest level in five years, according to government data.

Park also renewed calls for the reform of civil service pensions in a way that eases the burden of the government and people.

The case for pension reform for public servants has gained urgency as the increasing average life expectancy for Koreans could further deepen the pension deficit.

South Korea has faced the looming crisis as previous governments delayed addressing the issue of pensions for civil servants, despite being aware for decades that the current pension plan is not sustainable.

She warned that by next year the government will be forced to use 10 billion won (US$9 million) of taxpayer money every day to fund the civil service pensions unless the controversial pensions are reformed by a May deadline.

"Although reform is hard, it is the mission of our time to make it happen as the future of the country, its people and our future generations depends on it," Park said.

entropy@yna.co.kr
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