President Lee Jae-myung convened a meeting with the Korean Confederation of Trade Unions (KCTU) at the Blue House to discuss labor policy reforms. He emphasized the government’s ongoing commitment to building a society that respects labor and highlighted efforts to reduce industrial accident fatalities. President Lee acknowledged that the current fixed-term employment law, intended to promote stable employment, has instead led to employers limiting contracts to under two years. He called for practical alternatives to address these unintended consequences and improve labor protections.
The policies under review directly impact fixed-term and non-regular workers, employers, and labor unions across South Korea. President Lee noted that the law, which requires conversion to regular employment after two years, has resulted in employers terminating contracts at 1 year and 11 months. He also raised concerns about wage disparities between regular and non-regular workers performing the same tasks, which contributes to labor market polarization. The President urged labor unions to participate more actively in workplace safety management and policy discussions.
The meeting took place on June 10, with President Lee inviting the KCTU to engage in ongoing social dialogue. He stressed the importance of continuous and official communication between the government and labor organizations, especially as the KCTU has been absent from formal social dialogue bodies for an extended period. The government is also considering measures to address industrial accidents in small-scale workplaces and to respond proactively to the introduction of physical AI in the labor market. Implementation of any policy changes will depend on further discussions and consensus-building with labor stakeholders.
Frequently asked questions include whether the government will change the two-year fixed-term employment rule and how wage disparities will be addressed. President Lee clarified that while the law was designed to protect workers, it has had adverse effects, and practical solutions are being sought. Another question concerns labor union participation in safety management; the President emphasized that government oversight alone is insufficient and called for greater union involvement. Finally, regarding the adoption of AI in workplaces, the government plans to invest resources and develop policies in consultation with labor representatives.
President Lee’s remarks highlight the need for practical reforms to South Korea’s fixed-term employment law, which has inadvertently led to job insecurity for non-regular workers. By encouraging active labor union participation in both workplace safety and policy dialogue, the government is seeking more balanced and effective solutions. The emphasis on addressing wage disparities and preparing for AI adoption demonstrates a comprehensive approach to labor market challenges. These efforts, if sustained, could lead to more equitable and safer working conditions.