PPP pushes to strengthen audit regulations on labor unions

Dec 21, 2022, 09:30 am

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Rep. Ha Tae-keung of the ruling People Power Party (PPP) answers questions from reporters after the 4th Standing National Committee held at the National Assembly on Aug. 5, 2022./ Photographed by Lee Byung-hwa

AsiaToday reporter Kim Na-ri

The ruling People Power Party (PPP) proposed Tuesday the so-called ‘Labor Union Dark Accounting Prevention Act’, which strengthens accounting audit regulations on labor unions, as the Yoon Suk-yeol administration gears up for the labor reform.

Rep. Ha Tae-keung of the PPP announced that he had proposed revisions to the country’s Labor Union Act during a press conference held at the National Assembly.

The revision stipulates that the qualifications of labor union auditors are those who hold legal qualifications, such as qualified public accountants, and that accountants within the union are excluded from audit activities. Under the revision, labor unions at private and state-run companies with 300 or more members are required to report their accounting records to the central government and prepare a specific list of accounting materials available for their members.

The purpose is to increase transparency by establishing new qualifications for auditors and making labor unions obligatory to submit and disclose accounting records through the revision of the law. The current law obliges labor unions to appoint an accountant, but there are no qualifications for an accountant.

After the press conference, Rep. Ha told reporters that the current union accounting system is like setting the fox to keep the geese. “As the financial scale handled by labor unions is over 100 billion won, the country’s unions must come out of the darkness into the bright world. Unions must be transparent in their accounting so that they can fulfill their responsibilities according to their authority and power,” he said.

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