Labor Minister Kim Young-hoon stated on August 5 that discussions regarding the Mega Special Zone Law are still in progress and nothing has been finalized yet. He added that the ministry plans to review the situation based on fact-finding surveys and factual circumstances. The criteria for determining the subjects of negotiations and disputes under the Yellow Envelope Law (revised labor law Articles 2 and 3) will be clarified within this month.
During a luncheon meeting with reporters at the Government Sejong Building, Minister Kim addressed the backlash from the two major labor unions regarding the Mega Special Zone Law, saying, "Since government policies have not yet been finalized, there will be discussions within the ministry. I will communicate with the labor sector as the minister in charge, as we have proposed social dialogue."
Previously, on July 27, the Ministry of Labor reported to ruling party lawmakers on the Climate, Energy, Environment, and Labor Committee about plans to promote the Mega Special Zone Law, which includes provisions for easing labor regulations. The report indicated that if workers agree, the law would eliminate the 52-hour workweek limit for managers and researchers in the top 3% income bracket, replacing overtime, night, and holiday pay with standard pay, a measure referred to as 'white-collar exemption.'
It was also reported that the law would include provisions for extending the settlement period for flexible working hours, lengthening the duration of fixed-term employment, and expanding the scope of worker dispatch.
In response, the labor sector has expressed strong opposition. The Korean Confederation of Trade Unions (KCTU) and the Federation of Korean Trade Unions (FKTU) issued a statement the previous day condemning the provisions as anti-labor policies pushed by the Yoon Suk-yeol administration, declaring their intent to strongly oppose and prevent the advancement of the Mega Special Zone Law.
They also demanded a meeting with the president to discuss the government's proposed social dialogue regarding the transition to artificial intelligence (AI) and the establishment of the Mega Special Zone Law.
Regarding the argument that the Mega Special Zone Law should include easing work hour regulations, Minister Kim remarked, "I said that if the semiconductor special law does not include exceptions to the 52-hour workweek, it would be like a 'steamed bun without filling,' but companies are still performing well without exceptions. If a specific system is overly represented as a symbol of all problems, healthy discussions become difficult."
He continued, "It is reasonable to discuss some flexibility in work hours during the research and development process. However, while special extended work can be utilized for up to six months, there have only been about four applications. I understand that SK Hynix has not applied for it."
On the expansion of permitted dispatch sectors and the extension of fixed-term employment periods, he noted that these are longstanding demands from companies, emphasizing that the Labor Research Institute is conducting a fact-finding survey on how the fixed-term law and work hour systems operate in the field, and that reasonable alternatives should be sought based on the results.
Plans for social dialogue with the two major labor unions are being coordinated. In response to the FKTU's demand for a separate dialogue channel outside the Economic and Social Labor Commission, he stated, "While they have set conditions, we should appreciate their willingness to engage in social dialogue. We will need to examine the specific methods further."
Regarding the criteria for determining the subjects of negotiations and disputes under the Yellow Envelope Law, he clarified, "The company's management decisions themselves are not subjects of negotiation or dispute. If large-scale layoffs or restructuring occur, or if changes in working conditions accompany them, the labor union must naturally be consulted."
Concerning the so-called 'N% performance bonuses based on operating profit,' he stated, "The government cannot dictate the entire performance bonus. We plan to organize cases where the criteria for performance bonuses impact working conditions or are subject to negotiation and reflect them in field guidelines."
Minister Kim also introduced a proposed 'National First Career Responsibility System' aimed at improving the issue of job experience programs not leading to actual employment. This initiative seeks to strengthen the state's responsibility to ensure that young people can access new means of production, such as AI. Specific plans will be announced soon.
Regarding the proposed 'K Labor Welfare Council' for atypical workers, he emphasized, "This is not an organization to replace labor unions. A system is needed to provide welfare and retirement income to the 8.6 million atypical workers, including those in special employment and platform jobs."
* This article has been translated by AI.
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