Labor minister vows to facilitate dialogue on mega special zone labor exemptions

Minister of Employment and Labor Kim Young-hoon said Tuesday that the government would serve as a facilitator of dialogue on labor exemptions under the mega special economic zone legislation, with no outcome predetermined. The ministry is seeking solutions through social dialogue on contested issues, including exemptions from the 52-hour weekly work limit and extensions to the permitted duration of fixed-term employment contracts.

Kim made the remarks at a national audit session of the National Assembly's Climate, Energy, Environment and Labor Committee in Yeouido, Seoul. "Since September, a focused round of social dialogue has been under way to discuss labor exemptions under the mega special zone law," he said.

Among the labor exemptions under discussion are a "white-collar exemption" that would exclude high-earning managers and research and development workers from the 52-hour weekly cap, a "2+2" scheme that would allow fixed-term contracts to be extended by an additional two years beyond the current two-year limit when labor and management agree, and an expansion of the settlement period for flexible working-hour arrangements.

"The most important thing for employment and labor policy is finding answers through dialogue and communication," Kim said. He cited tripartite agreements on strengthening the retirement pension system and reducing actual working hours, and said the inaugural Economic, Social and Labor Council of the new administration was also discussing key issues including youth employment and the transition to AI.

On the revised Trade Union Act — commonly known as the Yellow Envelope Law — Kim said settlements in bargaining between primary contractors and subcontractors had been emerging since the law took effect. "We will actively support the bargaining that has now begun in earnest between contractors and subcontractor workers," he said.

According to the ministry's work report, 159 primary contractors had initiated bargaining procedures since the revised law came into force, of which 125 had completed the process of consolidating bargaining channels and entered substantive negotiations. The ministry plans to provide guidance on bargaining procedures through dedicated teams at regional employment and labor offices and to spread cooperative models tailored to different regions and industries.

The ministry also plans to address the practice of splitting fixed-term contracts into shorter stints and to tackle discrimination based on employment type. "We will improve the treatment of non-regular workers in the public sector and reform subcontracting practices so the government leads by example, then extend those improvements to the private sector," Kim said. The ministry is pushing to ban, in principle, public-sector contracts of less than one year and to introduce a fairness allowance, with a road map for equal pay for equal work to be drawn up in December.

On industrial safety, the ministry will focus on supporting small workplaces and managing companies with repeated fatal accidents. Kim noted that the number of fatal workplace accidents in the first half of the year fell 11.8 percent from the same period a year earlier, the lowest level since records began, but said the ministry would press ahead "with the resolve that not a single life can be given up."

"For companies where the same type of accident recurs, we will thoroughly analyze the causes and take responsible charge of ensuring corrective measures are carried out," he said, adding that the ministry would spare no effort in preparing for and embedding the revised Occupational Safety and Health Act in workplaces.

On wage theft, the ministry will continue comprehensive inspections of workplaces with repeated violations and preventive oversight. Prosecutors' authority to direct special judicial police investigations was abolished Monday, and Kim said the ministry would "faithfully implement the measures we have prepared, including reinforcing the investigative command structure and strengthening specialist training, to meet public expectations through fair and rigorous investigations."

For young workers, the ministry will extend support beyond training and work experience to help them build their first career track, while for middle-aged and older workers it will broaden opportunities to remain in employment. To close protection gaps for platform workers and others outside the coverage of labor relations law, the ministry will support the enactment this year of a basic law on the rights of working people.

"When industrial structures change, the way people work changes — and when the way people work changes, the way we protect workers must change too," Kim said. "I will ensure that the democratic advances our society has made take root in the workplace as well."