Labor commission chief says mega special zone work-hour exemptions must go through dialogue with unions

Kim Ji-hyung, chairman of the Economic, Social and Labor Council (ESLC), said Tuesday that labor exemptions planned for high-tech mega special zones — including exceptions to the 52-hour workweek cap — must first be worked out with unions. Amid ongoing disagreements between government ministries and pushback from labor groups over the proposed exemptions, Kim also said the ESLC stands ready to lead tripartite social dialogue if called upon.

Speaking at a joint press briefing of ESLC sub-committee chairs at the council's office in Jongno-gu, Seoul, Kim was asked how the government should resolve the interministerial disagreements over the mega special zone labor exemptions. "Under the Government Organization Act, when ministries disagree, it falls to the Office for Government Policy Coordination to sort it out," he said.

Kim said that beyond internal policy coordination within the government, a separate process was needed to address union concerns. "All of the nation's core capabilities must be mobilized for the mega special zones," he said. "The government has its position on resolving that issue, but we also need to address what labor is worried about. We must first find a solution together with the unions."

The proposed mega special zone legislation is being reviewed to include various regulatory exemptions aimed at boosting the competitiveness of advanced industries — semiconductors, AI, biotech and next-generation vehicles — along with labor-related provisions such as exemptions from the 52-hour weekly limit for research and development workers. Industry groups have called for more flexible working-hour rules to compete globally, while unions have opposed any easing of working-time regulations.

Kim said he expected broad public support — not just from labor — for channeling all national resources into advancing industries such as semiconductors, physical AI and AI data centers. "At the same time," he added, "the provisions known as labor-related exemptions are a core concern for unions, so we need to simultaneously examine ways to address what they are worried about."

For now, the ESLC's position is to watch how National Assembly deliberations and government-labor discussions unfold, since the mega special zone legislation is a matter for the Assembly to pass. Kim also noted that the specific format of social dialogue being sought by the two major union federations has yet to be clearly defined.

He made clear, however, that the ESLC would not hesitate to step in if given a role in the process. "If the president asks the ESLC for advice on this issue, or if the situation calls for the ESLC to facilitate social dialogue through specific consultations between labor and government or among labor, management and government, I will not hesitate to actively pursue social dialogue on this matter," Kim said.

The ESLC is conducting social dialogue on a range of key labor market issues beyond the mega special zone exemptions, including reducing actual working hours, retirement pensions, unfair labor practices and the working-hours exemption system. Its Labor Relations Institution Development Committee addresses follow-up tasks from the working-hours reduction initiative and retirement pension discussions on the individual labor relations side, and examines improvements to the unfair labor practice and working-hours exemption systems on the collective side.

The committee, which launched in late May, has reviewed the structure of working-hours rules, key points of contention and the use of flexible work arrangements. It has also examined gaps in retirement pension coverage, the status of reported unfair labor practice cases by type and punishment, and the filing and approval of emergency compliance orders. A separate subcommittee on improving the workplace harassment system launched last month.

The ESLC is also considering whether to take up the so-called "N% management performance bonus" — a labor-management flashpoint that gained prominence following disputes at Samsung Electronics and other companies — as a new social dialogue agenda item.

"We have internally consulted experts and gathered a wide range of opinions," Kim said. "We have been conducting internal reviews on whether to place this issue on the ESLC's social dialogue agenda."

He added that once the internal review is complete, the plan is to hold working-level consultations with the relevant labor, management and government parties before formally placing the issue on the agenda for full discussion — though he noted "nothing has been finalized yet."

Kim said views are divided not only between labor and management but also among academics and legal experts on whether management performance bonuses are subject to collective bargaining. If an employer refuses to bargain over bonuses, it could raise unfair labor practice issues, and resolving the matter through the courts could take considerable time — making it difficult to resolve the immediate conflict simply by determining whether bonuses are a bargaining subject.

"Whether or not it falls under collective bargaining cannot be the solution to resolving this issue right now," Kim said. "We need to go through social discussion to establish rational standards and principles for distributing management performance."

The N% performance bonus issue will not, however, be immediately added to the Labor Relations Institution Development Committee's agenda. Cho Seong-jae, the committee's chair, said the panel is currently focused on working-hours reduction, retirement pensions, working-hours exemptions and unfair labor practices, but added that the performance bonus issue could be taken up later if both labor and management agree on the need.

In the area of industrial safety, the ESLC is expected to discuss redesigning serious accident prevention laws and systems to better fit workplaces with fewer than 50 employees. According to the ESLC, about 80 percent of fatal workplace accidents occur at businesses with fewer than 50 workers, and roughly 40 percent of all fatal accidents happen at businesses with fewer than five.

An industrial safety committee focused on improving accident prevention at small workplaces has set its agenda to include the rational application of the Occupational Safety and Health Act and the Serious Accidents Punishment Act, the establishment of risk assessments, improving the effectiveness of government accident-prevention support programs, and better use of safety and health managers.

Park Du-yong, chair of the industrial safety committee, said discussions on the Serious Accidents Punishment Act have not yet begun, but noted that "in the long run, there are voices — including from labor — saying it would be a stretch to apply it directly to small workplaces."

Park said there is a shared understanding that the discussion should begin not with how to apply the existing Serious Accidents Punishment Act to small workplaces, but with what legal, sanctions and support framework needs to be designed to actually reduce serious accidents at such workplaces. Depending on the outcome, the committee plans to recommend either supplementing the current law or designing a new approach, and submit its findings to the government.

The spread of AI and robots and its impact on employment is also a major social dialogue topic. A labor-management cooperation committee on the AI transition is discussing how AI adoption affects employment and job roles, information sharing and consultation between labor and management, training to respond to job changes, data use and protection, and measures to support job security and labor mobility.

Hwang Deok-sun, chair of the AI transition committee, said that even as the government accelerates the spread of AI and physical AI, "ultimately, such technologies only deliver results when they are applied and take root on the ground." He added that "even if things move fast, results depend on change actually happening in the workplace." He said AI has characteristics that set it apart from conventional new technologies, making it necessary to think about new ways for labor and management to respond during the adoption process.

In the area of youth employment, calls were raised to expand the policy target to include young people who are "resting" — neither working nor seeking work — as well as those in the early stages of their careers. Kwon Hye-won, chair of the youth employment committee, said the youth employment rate has continued to fall and the growing number of young people classified as "resting" has emerged as a serious social problem. She said the youth jobs crisis should not be approached simply as a matter of job mismatch or young people having unrealistic expectations.

At its first plenary session in March, the ESLC voted to establish and operate a total of 16 bodies — one special committee, six issue-specific committees, one industry-specific committee, four constituency-based committees and four research groups. Of these, 14 bodies, excluding two research groups, have been launched and are currently in discussion.

Kim categorized the labor issues the ESLC will address into "transition agenda" items — responding to demographic shifts, AI, green transition and industrial transformation — and "accumulated agenda" items aimed at resolving structural problems in the existing labor market, such as employment gaps, workplace safety and youth jobs.

On the Korean Confederation of Trade Unions (KCTU) recently signaling openness to joining social dialogue, Kim said he viewed it as "a significantly more progressive stance" and welcomed the development. "We have hoped that the KCTU would participate in the committee as a representative of labor in terms of forming a complete social dialogue body," he said. "We actively hope for the KCTU's participation."