(Unofficial Translation)

I am glad to meet you all. Today, we have arranged an onsite meeting to discuss employment retention with labor and management representatives from the hotel industry, which has been the hardest hit by the COVID-19 outbreak. This location may seem a little unusual, but I would like to share with the people what labor and management have proudly achieved for mutual benefit. Your efforts to preserve jobs have become an exemplary model and a source of hope for all industries and businesses that are suffering hardships.

At the dawn of 2020, the tourism industry prepared for “the era of 20 million international tourists” in a hope-filled atmosphere, anticipating a drastic increase in the number of inbound travelers. Considering this, I feel regret and am heavyhearted. Due to social distancing and a sharp decline in foreign tourists, hotels are seeing their room occupancy rates plunge, suffering steep decreases in sales. The tourism, lodging and restaurant industries are also bearing the brunt of the unemployment shock with a huge drop in the number employed and a rapid rise in temporarily furloughed workers.

However, labor and management in the hotel industry came together with a single goal in mind in the most exemplary manner during a most difficult period. Management has not forced workers to take unpaid or annual paid leaves but has opted for business suspensions and preserved jobs. Labor unions agreed to cooperative labor-management relations instead of going on strike. They renewed their resolve to protect jobs together by retaining employment in lieu of restructuring. 

The Korea Hotel Association and the Korean Federation of Tourist & Service Industry Worker’s Unions have set an example for labor-management cooperation within this industry. Management and labor unions at various hotels also agreed to follow suit, including the SK Networks’ Walkerhill, the Grand Hyatt Incheon, The Plaza Seoul and the Grand InterContinental Seoul Parnas. Above all, I’d like to extend profound gratitude to President Kang Seok-yoon, Chairman Yoo Yong-jong and the representatives of labor and management from the hotels for joining forces to safeguard invaluable jobs. 

A “job crisis” is descending upon us ferociously, but the Government will stand by you, determined to protect even a single job without fail. The Government has designated tourism and lodging, which face an employment adjustment crisis, as industries for special employment support and is providing funds to cover up to 90 percent of business-suspension and leave-of-absence allowances. This month, we will devise an additional package of measures to promote job security and stable business operations: 10 trillion won for job security and 75 trillion won for stabilizing business operations to protect job opportunities.

In addition, for businesses where labor and management signed an agreement to maintain employment, we will supply financial assistance to help cover a certain amount of the reduced wages. In order to provide uninterrupted support for workers even during business suspensions and leaves of absence, we’ve launched new programs: “employment retention financing” and “unpaid-leave quick support.” The hotels’ subcontracted, non-permanent employees will benefit from these programs the same as their regular workers.

Tour guides, employees at travel agencies and tourist bus drivers are all going through a difficult time. We will strive to save the entire tourism industry as well.

The Government is supplying a total of 900 billion won in loans through plans to provide emergency support for the tourism industry. We also extended the deadline for paying taxes and reduced property taxes in cooperation with local governments. In addition, we have deferred an assessment to rate the quality and safety of hotels until the infectious disease alert has been lifted.  

I believe that distributing “tourism gift certificates to overcome COVID-19” and expanding the income tax deduction for credit and debit card purchases at dining, lodging and tourism establishments will help bolster consumption. 

We laid the foundation for a social safety net amid the pain of layoffs in the 1997 foreign exchange crisis and surmounted the 2008 global financial crisis through job sharing programs. Today, all of you have played a significant role in employment protection in the face of the COVID-19 crisis. You are creating new hope while responding to the post-COVID-19 era by, for example, offering non-face-to-face services that minimize contact with guests and selling luxury hotel cuisine online. 

As the COVID-19 situation has considerably stabilized recently, the Government is preparing to transition to a system of maintaining infectious disease prevention and control in daily lives. We anticipate that the emergency relief payments to be distributed in May following the Golden Week holidays will serve as a good opportunity to help revive domestic demand.   

I extend my gratitude once more to all of you who have shown the power of mutual benefit, and I would like to say that we should overcome this crisis together without fail. I’m looking forward to the power of solidarity and mutual benefit that you have shown moving beyond the hotel industry and spreading throughout the service sector and all of manufacturing.    

Thank you.