The Economic, Social and Labor Council (ESLC) launched the 「Study Group on Institutional Improvement for Enhancing Workers' Real Income」 (hereinafter referred to as the “Study Group”) and held its first meeting in the ESLC's Main Conference Room on the 7th floor on the afternoon of June 2.

The Study Group is chaired by Professor Park Ki-baeg of the Department of Science in Taxation at the University of Seoul and consists of a total of 12 members, including two representatives each from labor and management, two government representatives, and five public interest members. It will be operated for one year from the date of its inauguration.

Recently, there has been growing social concern that workers' real income, as experienced in everyday life, has stagnated or declined.

Workers' real income is determined by a combination of factors, including nominal income such as wages, prices, taxes, social insurance fees, and various social security benefits.

Accordingly, the Study Group plans to conduct discussions centered on the following key agenda items: ▲the impact of tax and social insurance contribution systems on workers' real income, ▲the decline in the real value of cash benefits and changes in their effectiveness, ▲the income redistribution effects and impacts of the social welfare system on workers, and ▲estimation of the impact of real income across different income groups.

Chairman Kim Ji-hyung of the ESLC stated, “What matters most in workers' lives is not simply how much their nominal income has increased, but how their real income, as experienced in everyday life, has changed.” He added, “I hope this Study Group will comprehensively examine taxes, social insurance fees, cash benefits, and price changes to identify policy directions that can improve workers' lives, and that its discussions will eventually develop into a broader agenda for social dialogue.”

Professor Park Ki-baeg, the Chairman of the Study Group, stated, “The income that workers actually experience is determined not by nominal wages but by real income.” He continued, “Only by considering rising prices together with changes in taxes and burdens of social insurance fees can we accurately assess workers' actual income conditions. It is also important to evaluate the extent to which various cash benefits intended to enhance social welfare translate into real benefits for workers, rather than focusing solely on their nominal amounts.”