Labor Minister Kim Young-hoon vows preemptive steps as airline, tourism woes deepen

By Kim SeongSeo Posted : April 27, 2026, 15:05 Updated : April 27, 2026, 15:05
Kim Young-hoon, minister of employment and labor. (Ministry of Employment and Labor)
Rising oil prices and exchange rates linked to the Middle East war are adding to strains on South Korea’s airline and tourism industries, and Labor Minister Kim Young-hoon said Monday the government will prepare extraordinary steps to prevent the crisis from spreading.

“At this moment, what matters most is preemptive action and close cooperation to protect jobs,” Kim said. “We will proactively consider special measures to keep the situation from worsening.”

The Ministry of Employment and Labor held its fifth emergency employment and labor situation review meeting at Gimpo Airport with the Korea Air Transport Association, the Korea Tourism Association, the Seoul Tourism Association, the Korea Association of Travel Agents and three airlines. The meeting reviewed business and employment conditions in the two sectors and discussed practical support measures.

Airlines said demand has not fallen sharply so far, but they are concerned about higher costs and losses from rising fuel prices and exchange rates, as well as a possible drop in summer demand if fuel surcharges surge. Some carriers have begun accepting applications for unpaid leave and have put new hiring on hold, signs of mounting employment stress.

Tourism companies also face worsening profitability, with major travel agencies considering unpaid or paid leave. The ministry said there is concern that sharply higher fuel surcharges could weaken travel demand and spread job insecurity across the industry.

Industry representatives called for broader government support, including easing eligibility requirements for employment retention subsidies and simplifying procedures to speed payments. They also requested expanded support for job retention and training through designation as a special employment support industry, and relief such as deferring payments of employment and industrial accident insurance premiums.

The ministry said it will closely monitor employment trends in the airline and tourism sectors. If conditions worsen, it will review expanding the list of industries eligible for relaxed requirements for employment retention subsidies. For industries covered by the eased rules, subsidies can be paid even if firms do not meet the sales-decline threshold, if deteriorating conditions make workforce adjustments unavoidable.

The ministry also said that starting May 12 it will unify support categories that are currently split between business shutdowns and leave into a single type and simplify eligibility requirements.

It said it will quickly review whether to designate the sectors as special employment support industries. To do so, the ministry is improving quantitative criteria, including better detection of employment shocks and reflecting conditions for day laborers. It said it will promptly assess applications from industry associations and provide support under relevant procedures.

“The airline and tourism industries are a bridgehead for our economy that helps spread K-culture, and they are the workplace that supports the lives of countless workers,” Kim said. “The ministry will remain a strong backstop so this foundation does not shake.”

He also said the ministry will expand communication with the industry to address hardships not captured in statistics and pursue tailored support that can be felt immediately on the ground, while not neglecting its basic duty to protect workers’ lives and safety.



* This article has been translated by AI.

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