The Korea Restaurant Association (KRA) Central Association, facing difficulties due to soaring delivery fees and the expanded application of the Labor Standards Act, held a large-scale rally starting at 2:30 PM on December 1st in the vicinity of the National Assembly in Yeouido, Seoul. They proclaimed, "Due to regulations that ignore the realities on the ground, most businesses are facing the brink of closure," and "We strongly condemn the ever-increasing delivery platform fees and the government's policy to expand the Labor Standards Act to businesses with fewer than 5 employees." ⒸHanmi Ilbo

The Korea Restaurant Association (KRA) Central Association (President Kim Woo-seok, hereinafter referred to as the Central Association), which is struggling with soaring delivery fees and the expanded application of the Labor Standards Act, has donned headbands.

The Central Association held a large-scale rally starting at 2:30 PM on December 1st in the vicinity of the National Assembly in Yeouido, Seoul. They proclaimed, "Due to regulations that ignore the realities on the ground, most businesses are facing the brink of closure," and "We strongly condemn the ever-increasing delivery platform fees and the government's policy to expand the Labor Standards Act to businesses with fewer than 5 employees."

In the first part of the event, related organizations including the Central Association, the National Franchisee Association, and the Association for Fair Platforms gathered to urge the enactment of the 'Online Platform Act'.

The Central Association stated, "Restaurant owners are becoming dependent on delivery platforms' exposure algorithms and advertising products, and are choosing expensive advertising products out of necessity to maintain sales." They strongly criticized, "This is a monopolistic structure of a few large platforms that induces a 'chicken game' among owners."

Consequently, the restaurant industry argued that the distorted market structure should be corrected and the cost burden on self-employed individuals should be reduced through the swift passage of related bills such as the △Online Platform Transaction Fair Act and the △Delivery App Fee Cap Act.

The Korea Restaurant Association (KRA) Central Association, facing difficulties due to soaring delivery fees and the expanded application of the Labor Standards Act, held a large-scale rally starting at 2:30 PM on December 1st in the vicinity of the National Assembly in Yeouido, Seoul. They proclaimed, "Due to regulations that ignore the realities on the ground, most businesses are facing the brink of closure," and "We strongly condemn the ever-increasing delivery platform fees and the government's policy to expand the Labor Standards Act to businesses with fewer than 5 employees." ⒸHanmi Ilbo

The second part of the event called for the withdrawal of the government's policy to fully apply the Labor Standards Act to businesses with fewer than 5 employees.

According to the Central Association, as of the end of 2023, approximately 86.1% (about 700,000 establishments) of restaurant businesses nationwide are small businesses with fewer than 5 employees. The average number of employees in these establishments is only 1.5 people.

The Central Association expressed concern, "In a situation where it is difficult to find staff, even when paying significantly higher hourly wages than the minimum wage, expanding the Labor Standards Act will drastically increase labor costs due to the payment of overtime and holiday allowances, and the prohibition of comprehensive wage systems."

Furthermore, they stated, "This will ultimately lead to existing employees being dismissed or additional hiring being abandoned, pushing small business owners to closure."

They also strongly criticized recent discussions on strengthening labor regulations, such as the △introduction of a 4.5-day workweek and △phased expansion of retirement pension plans.

At the rally, Central Association President Kim Woo-seok stated, "Pushing forward with policies that ignore reality will only result in eliminating viable jobs and driving restaurant owners into a corner." He added, "Through this rally, we will inform the political sphere and the government of the dire reality faced by the restaurant industry without reservation, and we will absolutely withdraw the discussion of unreasonable legal application."

The Korea Restaurant Association (KRA) Central Association, facing difficulties due to soaring delivery fees and the expanded application of the Labor Standards Act, held a large-scale rally starting at 2:30 PM on December 1st in the vicinity of the National Assembly in Yeouido, Seoul. They proclaimed, "Due to regulations that ignore the realities on the ground, most businesses are facing the brink of closure," and "We strongly condemn the ever-increasing delivery platform fees and the government's policy to expand the Labor Standards Act to businesses with fewer than 5 employees." ⒸHanmi Ilbo

This is the full statement from the Korea Restaurant Association.

Dear citizens! And members of the press!

We, the members of the restaurant industry, stand here today to express our clear concerns and state our position regarding the labor law strengthening policies currently being pursued by the government. The government speaks of 'worker protection' in relation to the expanded application of the Labor Standards Act, reduced working hours, and the introduction of a 4.5-day workweek.

However, we have clearly witnessed firsthand on the ground for decades that labor law strengthening always trickles down to the lowest rung and ultimately harms the weakest workers.

What will happen if the Labor Standards Act is uniformly applied to businesses with fewer than 5 employees?

The labor cost burden for small businesses will skyrocket, resulting in job cuts and an increase in short-termアルバイト (part-time jobs).

Ultimately, vulnerable workers in the most unstable jobs will become the direct victims. Reduced working hours and a 4.5-day workweek may be feasible for large corporations and public institutions.

However, the reality is completely different for local restaurants, bakeries, and convenience stores. Reducing working hours while maintaining weekly holiday pay and overtime pay is no different than saying, 'Let both employers and employees go bankrupt.'

For whom are these policies truly intended?

What is needed now is not a policy that forcibly fits large corporation-centric labor policies onto small and medium-sized business owners, but rather differentiated policies by industry and size that fit the realities on the ground, and labor policies that allow both workers and employers to sustain their livelihoods together. Labor policies that harm the vulnerable, as we are seeing now, must absolutely not be implemented.

Today, we clearly state: We oppose the expanded application of the Labor Standards Act that ignores the realities of small businesses. We oppose policies that reduce working hours and lead to job cuts. We strongly oppose the uniform application of the 4.5-day workweek, a system designed for large corporations, across all industries.

If the government truly intends to protect vulnerable workers, please listen to the voices from the field. Policies that reduce job opportunities are not protection at all, but merely the 'beginning of another danger.' We, the restaurant industry workers, are doing our best to maintain employment every day.

Thank you.