South Korea’s president holds talks with two major labor unions on mega-project law and retirement age

President Lee Jae-myung brought South Korea’s two largest labor federations to the presidential office for talks on major labor and economic issues. He met Kim Dong-myung of the Federation of Korean Trade Unions and Yang Kyung-soo of the Korean Confederation of Trade Unions on Sept. 3.

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The national importance of the three mega-projects and their successful implementation are essential for future generations and strengthening national competitiveness.

The meeting followed Lee’s series of discussions with business leaders, including SK Group Chairman Chey Tae-won, Samsung Electronics Executive Chairman Lee Jae-yong and Hyundai Motor Group Executive Chair Chung Euisun. The talks with labor leaders focused on the government’s three mega-projects and the proposed Mega Special Districts Act.

Presidential chief spokesperson Kang Yoo-jung said Lee emphasized the national importance of the projects and argued that their successful implementation was essential for future generations and national competitiveness. The two union leaders said labor’s close communication and active participation were necessary. They called for labor-related disputes over the bill to be addressed through social dialogue involving employers and workers.

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Close communication and active participation by labor are necessary for the successful implementation of the projects.

Lee and the union leaders also agreed that lawmakers should reach a decision before the end of the year on legislation to extend the retirement age. The issue has been debated for the past year by a National Assembly special committee. Lee additionally welcomed discussions about the KCTU returning to the Economic, Social and Labor Council, urging both unions to take part in a full tripartite dialogue.

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The labor-related issues in the Mega Special Districts Act currently under discussion should be resolved through social dialogue involving labor and management.

He said the country faced many issues that labor, business and government needed to solve together, including the artificial-intelligence transition in the workplace and K-shaped polarization. The unions expressed concern about the possible easing of the 52-hour workweek during the creation of a semiconductor cluster in the Honam region. They also opposed labor ministry guidance saying demands for performance bonuses tied to a percentage of operating profit, and opposition to a new Honam semiconductor plant, could not be mandatory bargaining or lawful strike issues.

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With many national challenges that labor, management and the government must solve together, find solutions through complete social dialogue with both major labor unions participating.