국세청, ‘재계 저승사자’ 서울청 조사4국에 초고액 체납자 추적 전담팀 신설

Since the implementation of the 'temporary and short-term employment protection act' (temporary act), the rate of transition from temporary employment to fixed employment has been declining, according to recent government research. The government is considering expanding the temporary employment period from the current 2 years to 4 years in 'mega special zones' such as the southeast (west) cluster of semiconductor factories.

However, there is concern that this could exacerbate the issue of a growing number of irregular workers, leading to negative consequences. A research report from 2024 obtained from the Ministry of Employment and Labor shows that after the implementation of the temporary act, the ratio of temporary workers transitioning to fixed employment or changing jobs decreased from 5 years (2007-2011) to 11 years (2012-2022).

The research team analyzed the data from the Korean Labor Information and Service System (KLIPS) to understand the changes in the employment pattern of temporary workers. The study revealed that the transition to fixed employment regardless of the size of the company decreased from 9.7% to 6.5% and from 11% to 4.8% for workers moving to a different company within the same period.

In smaller companies, the flow was similar. Among these workers, those who transitioned from their previous company to a fixed position (13.2% to 9%) or changed to another company in a fixed position (16.3% to 7.9%) saw their numbers drop by 4.2% and 8.4% respectively. However, the number of workers transitioning to other forms of irregular employment, such as short-term, contract, or dispatched workers, increased by almost twice, from 5.5% to 10%.

The younger generation of workers has also been affected significantly. After the temporary act was implemented, the ratio of fixed employment after 2 years was 26.8%, which was more than three times higher than the rate of irregular employment (8.8%). However, in the later period (2012-2022), the ratio of irregular employment increased significantly to 25.3%, while the fixed employment rate dropped to 11.2%.

The research team noted that the temporary employment system is becoming a trap that prevents workers from moving to better jobs throughout their careers. The ongoing increase in temporary workers, now exceeding 533,000 in 2021, has contributed to an increase in income inequality. Those who started their first job as irregular workers face a gap of 25%-32% in lifetime earnings for women and 14%-28% for men compared to their counterparts who began with fixed employment.

The proposed extension of the temporary employment period to 4 years in 'mega special zones' could further widen this divide. While workers may benefit from up to 2 years of employment, the likelihood of securing fixed employment decreases for the company. Kim Jong-jin, director of the Citizens Research Institute, criticized the government for not doing enough to support workers and suggested that the extension of temporary employment to 4 years in mega zones would signal that regular employment is not needed.

This, in turn, would encourage more irregular workers, which is contrary to the intended purpose of the mega zones.