President Lee: Distribution of Operating Profit Should Not Be a Labor Dispute Issue

By Kim Bongcheol Posted : July 21, 2026, 15:04 Updated : July 21, 2026, 15:04

President Lee Jae-myung stated that the issue of distributing a portion of operating profits to workers should not be classified as a labor dispute. He expressed this view during a Cabinet meeting held at the Blue House.


During the meeting, President Lee remarked, "It seems that the scope of what constitutes a labor dispute is being overly expanded." He emphasized that the government should provide clear criteria regarding the boundaries of labor disputes.


He noted, "It is the government's role to provide certain standards regarding labor laws. Not every issue needs to be resolved through legislation; legislation serves as a broad guideline, while the executive branch is responsible for specifying these guidelines in practice."


Kim Young-hoon, Minister of Employment and Labor, commented on claims from the Samsung Electronics union, stating, "The decision by Samsung Electronics to build a large semiconductor plant in Gwangju should not be considered a labor dispute issue. We have previously issued a statement indicating that it contradicts the intent of labor law amendments."


In response, President Lee pointed out, "There are management rights and decisions related to working conditions, but the limits are ambiguous. The question of what percentage of operating profit should be distributed as a labor dispute is being debated across various workplaces, and there are many that are considering strikes over this issue."


He further suggested that the government's position should be clearly defined in advance through executive orders, presidential decrees, and labor department guidelines. "Before disputes arise, the labor commission should make determinations, and if necessary, we should clarify these issues through presidential decrees or guidelines to reduce social conflicts," he added.


President Lee urged for a swift resolution, stating, "If we continue to expand the definition, will there ever be an end? We need to clarify this quickly within reasonable limits."


Regarding military airports, he noted, "If a factory is built in Gwangju, there may be claims that it could lead to relocations, suggesting that management decisions are related to labor disputes. However, if we consider that management rights could potentially worsen working conditions, then issues like inheritance or the sale of management rights could also become endless labor dispute topics."


Additionally, President Lee mentioned the need to reassess current laws that could expose the government to potential third-party bribery charges when promoting corporate social contributions. He stated, "Currently, prosecutors seem to believe that if there is any connection to government discussions, even donations to third-party public interest organizations could be deemed guilty under the third-party bribery law."


He concluded, "This situation has arisen because we have been operating the penal system for political purposes. We need to find a way to resolve this issue. If we pursue it, we will find ourselves in trouble, even if there are legal grounds for it. This is a matter that needs to be addressed with clear guidelines at some point."





* This article has been translated by AI.

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