By Lee Kyoung Mi, Kim Minji and Hahm Hee-eun 

The launch of the Gwangju job project is expected to provide a win-win solution for both companies and workers as a new model of employment.

The project was originally proposed as an election pledge in June 2014 by Yoon Jang-hyun, who went on to become mayor of Gwangju Metropolitan City. Intended to create 10,000 jobs in Korea’s sixth-largest city, the venture has attracted renewed interest since President Moon Jae-in included it in his administration’s agenda of 100 policy items.

The Gwangju municipal government benchmarked the so-called Auto 5000 project of German carmaker Volkswagen in devising the Gwangju job project. When its output significantly dropped during the 2001 recession, Volkswagen suggested forming a new corporation, Auto 5000 GmbH, that paid workers 80 percent of existing wages to keep production in Germany. The company’s union and the surrounding community agreed to this, thus creating a benchmark for overcoming economic crisis.

The Gwangju job project, the first employment model set forth by the Moon administration, is based on compromise between labor and management. Under this model, companies can create more jobs by halving worker’s annual salaries. The central government and regional bodies in Gwangju will provide welfare services including housing, education and medical care to raise real wages, which will mutually benefit labor and management.

After the project gets the green light, Gwangju plans to establish a joint venture with Hyundai Motor Company to build a car factory within Bitgreen National Industrial Complex for producing small SUVs from 2021. Around 12,000 jobs are expected to be created. If this model of socially integrated employment is successful, a second or third edition of the project is possible.

President Moon also mentioned the Gwangju job project on Nov. 22 at the launching ceremony of the Economic, Social and Labor Council. “The Gwangju job project is a win-win employment model that boosts job creation through social compromise,” he said. “It also keeps companies competitive and contributes to regional development.”

“The Gwangju job project will achieve a new breakthrough to solve current employment problems. Once the agreement is concluded, the government will spare no effort to support the project.”

Social consensus is needed to build partnerships among social fields in addition to promoting job creation. Hyundai on Dec. 5 took the first step toward building such social consensus by tentatively reaching a final agreement with its union to invest in the Gwangju car plant.


km137426@korea.kr