On August 5, Choi Kyung-hwan, S. Korea's deputy prime minister and finance minister, called on public corporations to adopt a wage peak system at an early date. He said: “Implementation of a wage peak system is not an option but a must.”
Chairing a meeting held at Government Complex Seoul, Finance Minister Choi said; “The implementation of a wage peak system is one of the government’s key task that affects both the labor market and the public sector, two of the major areas that will be subject to .The wage peak system may not be the only solution to a ‘youth employmentc liff’ but an alternative solution to it.”
“Raising the country's retirement age from 58 to 60 next year could shrink new hirings over the next two years. This means a tougher road ahead for young job seekers,” he argued.
“If we failed to wisely pull us through a so-called employment "Ice Age" in the next few years, individuals will suffer greatly, not to mention the Korean economy,” Minister Choi said.
“I hope large public corporations like LH and KORAIL will take the lead and reach labor-management agreement on it this month. I expected heads of large public corporations to steadfastly forge ahead with the system,” he added.
Though the financial minster is pushing for a wage peak system and the so-called “labor reform” in the name of boosting youth employment, he actually has designs on something else.
It is regarded as a fait accompli that Choi will return to the National Assembly by the end of this year. He has to run in April's parliamentary elections next year to create his own job in the National Assembly. Though there are sayings that go “Roses and maidens soon lose their bloom" and “Every flood has its ebb,” they don’t apply to Ministry Choi. Choi, a third-term lawmaker of the ruling Saenuri Party, has been holding a seat in the National Assembly for 12 years. By comparison, the average tenure of a minister is over one year.
Minister Choi spent most of his three-day summer vacation in his home constituency of Gyeongsan in North Gyeongsang Province. He was seen to have curried favor with voters by visiting senior citizen centers and appearing in a local athletic meeting. He also met a group of local reporters and he told reporters: “Enough money is being invested in the region.” When asked about a project to modernize a traditional market in the region, Choi made a controversial comment: “I will positively think over a proposal if you send it to me.” Critics say his remarks were very inappropriate as the incumbent finance minister.
His visit came only a few days after President Park Geun-hye urged her Cabinet members on July 21 to refrain from pursuing their personal agenda and focus on government affairs. It wasn’t the first time for President Park to urge Cabinet members to refrain from politicking. She did it right after the resignation of Saenuri Party floor leader Yoo Seung-min. However, no one can suppress hungry job seekers’ desire for self-promotion.
In response to growing criticism over his attempt at “pork barrel” politics, Minister Choi said: “I made such comments not as finance minister but as a lawmaker.” His comment comes as no surprise since S. Korea allows ministers hold a seat in the National Assembly. As he’s got not much to lose as an elected lawmaker and appointed minister, he will run in the in the next general elections, slated for April 2016, with a spring to his step.
When he took office as finance minister, he was in such great vigor that he almost looked capable of rescuing the entire nation. His expansionary economic policy, dubbed “Choinomics”, had fizzled out long ago.
Minister Choi reportedly said in a meeting with university students, “I feel very sorry for what young job seekers have to go through today.”
