Major labor unions raised $633M last year, new disclosures reveal

Members of the Korean Confederation of Trade Unions and Korean Health and Medical Workers’ Union demand a budget expansion for public health services in Yeouido, western Seoul, on Dec. 6. [NEWS1]

Labor unions with more than a thousand members raised more than 840 billion won ($633 million) in combined income last year, according to their first accounting disclosure.

Major labor unions disclosed their income, spending, assets and debts after the government threatened to exclude them from tax benefits unless they comply, a measure intended to raise the transparency of the operations of labor unions.

The combined income of those who reported totaled 842.4 billion won last year, according to data by the Ministry of Employment and Labor released on Wednesday. Of that, 818.3 billion won was spent. Almost 90 percent of their income was generated from union dues, distantly followed by other income, including interest, with 8.2 percent.

Some 91 percent of labor unions that were required to report complied while the rest refused to disclose the information, citing internal organizational policy.

More than 90 percent of the Federation of Korean Trade Unions (FKTU) and Korean Confederation of Trade Unions (KCTU) — the two major umbrella unions in Korea — and their affiliated unions respectively reported their accounts. The rate for the rest stood at 77.2 percent.

Those who did not disclose the information will be exempted from a 15 percent tax credit for union dues.

Some information by a group of unions was found to be untruthful. Affiliated unions of the FKTU and KCTU argued they did not spend any amount for organizing strikes and rallies as well as to mediate disputes. Some affiliated unions of the Korean Metal Workers’ Union argued they did not spend any on personnel expenses.

“We will consider exempting some labor unions of tax credits if they are determined to have made insincere reports,” said an official from the labor ministry.

The ministry plans to run the correction period through Dec. 22.

Unions with the largest income was KCTU’s Korean Metal Workers’ Union with 59.5 billion won, followed by its affiliated Hyundai Motor Workers Union with 22.8 billion won and the FKTU’s Federation of Korean Metalworkers’ Trade Unions with 22.4 billion won.

Total spending by major labor unions stood at 818.3 billion won, with 31.6 percent of the expenditure spent across affiliated organizations in the form of a grant. Excluding the grant, 18.4 percent of the funds was spent on personnel expenses, including for executives, while 8.6 percent was spent on managing the operations of the unions and 5.2 percent for negotiating disputes.

Unions that spent a large proportion on personnel expenses compared to their actual spending included Hyundai Motor Workers Union with 45.2 percent, or 13.5 billion won, and Jeon Gyojo, a union of teachers, with 56.8 percent, or 8.5 billion won.

“The government believes disclosure of labor unions’ accounting information is a necessary system for the development of healthy labor-management relationship in our society, and we will support to help settle the system,” said the ministry.

BY NA SANG-HYEON [jin.minji@joongang.co.kr]