Labor Disputes and Retirement Age Discussed in National Assembly Hearing

By Kim SeongSeo Posted : October 13, 2026, 16:08 Updated : October 13, 2026, 16:08

During a National Assembly hearing on the Ministry of Employment and Labor, concerns were raised that the government's implementation guidelines for the Yellow Envelope Law could create confusion in industrial settings. Discussions also touched on the retirement age and labor exceptions related to the Mega Special Zones.


On October 13, Rep. Na Kyung-won of the People Power Party criticized the ministry during the Climate, Energy, Environment, and Labor Committee hearing, stating, "There are issues with the Yellow Envelope Law itself, and the ambiguous guidelines, which include exceptions, could lead to more labor disputes in the field."


Previously, the ministry announced the 'Guidelines for Labor Disputes Related to Management Performance Bonuses' on September 3. The guidelines clarify that management decisions regarding performance bonuses linked to a certain percentage of operating profit, as well as the establishment or relocation of factories and the introduction of new technologies like artificial intelligence, are generally not subject to mandatory negotiations or disputes. However, performance bonuses related to working conditions and restructuring due to factory relocations or new technology implementations can be negotiation subjects.


Rep. Na described these guidelines as "irresponsible" and called for proper supplementary legislation or amendments to the enforcement decree.


Labor Minister Kim Young-hoon acknowledged the concerns, stating, "Such worries can exist," and noted that due to the nature of labor relations, it is difficult to categorize all issues uniformly. He refuted Rep. Na's claim that the ministry is yielding to the Korean Confederation of Trade Unions, saying, "It is true that the Korean Confederation of Trade Unions demands the complete abolition of the enforcement decree and guidelines."


The issue of extending the retirement age was also discussed. Rep. Kim Wi-sang of the People Power Party asked, "Given the social issues arising from the mismatch between retirement age and pension eligibility, is there a willingness to finalize legislation?" Minister Kim responded, "I think it is already late to discuss this today," and added, "The retirement age extension bill must be processed within this year. Since discussions have matured over a long period through the National Assembly Task Force, if we determine that a decision is needed, we will promptly present a government proposal."


Debate continued between the ruling and opposition parties regarding labor exceptions in the upcoming Mega Special Zones special law. Rep. Lee Cheol-kyu of the People Power Party criticized the government's previous strong opposition to exceptions for R&D personnel working 52 hours a week, stating that their stance changed after the announcement of the Honam Mega Special Zone, indicating a need for discussion. He urged that once a policy decision is made, it should be communicated to the public.


In contrast, Rep. Park Hae-cheol of the Democratic Party argued that the labor regulation exceptions being discussed in the Mega Special Zones law mostly do not pertain to semiconductor companies. He emphasized that for the success of the Mega Special Zones, it is essential to focus on securing key infrastructure and skilled labor rather than relaxing labor hour regulations or the abuse of non-regular workers.





* This article has been translated by AI.

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