President Lee: Profit-sharing unlikely subject for labor disputes

South Korean President Lee Jae-myung asserted that the distribution of a certain percentage of operating profits is unlikely to be a subject for labor disputes. Speaking at a State Council meeting, he expressed concern that the scope of what constitutes a labor dispute has become excessively broad since the revision of the Labor Union Act.

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Is the issue of distributing a certain percentage of operating profits really a subject for dispute? I think it is not.

"Is the issue of distributing a certain percentage of operating profits really a subject for dispute? I think it is not," President Lee stated. He pointed out that while the law provides general standards, the executive branch has the responsibility to establish specific criteria. "The administrative branch is not just a messenger; it is responsible for creating concrete standards," he added, emphasizing the government's role in defining such matters.

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The administrative branch is not just a messenger; it is responsible for creating concrete standards.

President Lee specifically referenced the case where some labor unions at Samsung Electronics claimed that the construction of a semiconductor plant in Gwangju was a labor dispute issue. He questioned this interpretation, asking, "If a factory is built in Gwangju, they might be transferred, so they argue it's a labor dispute target. But if you think about it that way, aren't all corporate management activities related?" He criticized the tendency to rely solely on legislative changes to resolve all issues, urging the Ministry of Employment and Labor to provide clear guidelines through presidential decrees, enforcement rules, and directives to define the boundaries of labor dispute targets.

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If a factory is built in Gwangju, they might be transferred, so they argue it's a labor dispute target. But if you think about it that way, aren't all corporate management activities related?