"Shift the punishment-focused Serious Accidents Punishment Act to fines...Use that money to support small workplaces" [Editorial News Analysis]
- Input
- 2026-01-21 18:05:40
- Updated
- 2026-01-21 18:05:40
The primary goal was to hear his views on the latest labor issues, but that was not all. I also wanted to understand, through the perspective of a former labor minister in a conservative administration, why labor reform has kept skipping like an old record, repeating itself without meaningful progress.
— What does genuine labor reform mean?
▲ "In a word, it means increasing the stability, flexibility, and fairness of employment so that more jobs are created."
— Measures to enhance employment stability are popular, but efforts to increase flexibility face strong opposition. Isn’t the current 'tilted playing field' partly the result of conservative governments failing to even touch the hot-button issue of making hiring and firing more flexible?
▲ "If you look for the reason, there was no control tower. For example, during the Park Geun-hye administration, Deputy Prime Minister for Economic Affairs Choi Kyung Hwan, Senior Presidential Secretary for Economic Affairs Ahn Jong-beom, Senior Presidential Secretary for Employment and Welfare Kim Hyun-sook, Chairperson of the Korea Tripartite Commission Kim Dae-hwan, and Minister of Employment and Labor Lee Ki-kwon all had different directions, methods, and levels of intensity in their labor policies. Even before there was any agreement on sensitive legal revisions such as the dispatch worker law, the government announced plans as if they were finalized, and everything fell apart. In effect, it was self-sabotage."
— It is of course important to tackle difficult tasks that increase employment flexibility, such as allowing the dismissal of underperformers. But given the pro-labor stance of the current progressive administration, it seems unlikely such measures can be realized.
▲ "In the past, President Kim Dae-jung (DJ) implemented mass layoffs and introduced the worker dispatch system during the IMF Crisis. That was possible because a progressive government could persuade its own political camp. If the current administration is determined, it should actually find it relatively easier than conservatives to win over the labor sector. That said, I also wonder whether even Kim Dae-jung (DJ) could have carried out such painful reforms without the crisis of the IMF era."
— Conservative governments have long criticized unions as entrenched interest groups. Some argue that, even with low unionization rates, unions should have been recognized as symbolic representatives and partners of workers and engaged in compromise.
▲ "Our unionization rate is only about 13%. Even so, if unions are to represent all workers, real 'solidarity and unity' must be achieved. But is it even possible for workers at subcontractors of large corporations to join the metalworkers’ union? The forms of work are highly diverse, including dependent contractors, yet unions are not fulfilling the role of spokespersons for everyone."
— The government recently announced plans to introduce a 'presumption of employee status' system to protect marginalized workers such as dependent contractors and freelancers. From the standpoint of serving diverse types of workers, isn’t there room to view this move positively?
▲ "To take that approach, you first have to acknowledge that workers are diverse. You need to categorize worker types into A, B, C, and D, and apply laws tailored to each. Applying the same Labor Standards Act to everyone is like insisting that someone who runs 100 meters in 10 seconds and someone who runs it in 20 seconds are the same kind of athlete."
— The Yellow Envelope Act, which has been the subject of intense controversy, will take effect on March 10. As the structure of rights and responsibilities among principal contractors, subcontractors, and unions changes fundamentally, confusion at worksites may grow.
▲ "The Yellow Envelope Act is unprecedented globally. There are cases where subcontracted workers are granted bargaining rights on specific, one-off issues, but no country applies such a system nationwide. Because there are serious concerns about side effects from excessively broadening the definition of 'employer,' that issue must be addressed first." (The Yellow Envelope Act allows subcontracted workers to bargain directly with principal contractors that exercise substantial control, and seeks to protect the right to collective action by limiting excessive damage claims arising from industrial disputes. The business community argues that it excessively expands the liability of principal contractors and increases management uncertainty. The labor sector, on the other hand, contends that it strengthens subcontracted workers’ bargaining power and channels disputes into the institutional framework.)
— Are you saying that Korea’s labor-related legal framework diverges from global standards?
▲ "The difference lies in how the system is implemented. Both Korea and the United States do not allow 'sit-in strikes occupying the workplace.' In the United States, such occupation strikes do not occur in practice because the law is enforced. In Korea, however, workplace occupation strikes still take place. In this kind of environment, it is hard for entrepreneurial spirit to flourish. Reform is not only about making new laws; it is also about ensuring that existing laws are properly observed."
— Alongside the Yellow Envelope Act, the Serious Accidents Punishment Act is another law that companies are deeply worried about. Safety is closely tied to work habits and culture, so many question whether a punishment-centered approach can really be effective.
▲ "Institutions are precisely what change culture. In the past, when accidents occurred, only the corporation and the on-site manager were punished. Since the Serious Accidents Punishment Act came into force, top management has started thinking, 'I could end up in prison,' and that has made them pay attention. They are securing budgets, creating dedicated organizations, and inspecting worksites, and things are gradually changing." (At the same time, Lee expressed concern that the government is fixated on the number of fatal accidents and overlooking other tasks. For example, Korea lacks a system to manage 'near miss accidents (near miss)'—incidents that do not cause immediate fatalities but could later lead to deadly accidents. In other words, warning signs of disasters are being ignored. According to the Robens Report, it took 50 years after the Health and Safety at Work etc. Act 1974 was enacted in the United Kingdom for annual fatalities to fall from 1,000 to 200. Nothing changes overnight.)
— In Korea, workplaces with fewer than five employees are the 'aching finger.' They are vulnerable and in need of protection, yet they are exempt from the Serious Accidents Punishment Act and are also where many fatal accidents occur. Isn’t it becoming harder to justify this exception?
▲ "Businesses with fewer than five employees struggle to meet even the basic obligations under the Occupational Safety and Health Act, such as appointing safety managers. Reality cannot keep up with the law. If we forcibly apply the Serious Accidents Punishment Act in this situation, we would in effect be deceiving the public. I would like to make one proposal. Let’s convert the punishment-focused Serious Accidents Punishment Act into a system of administrative fines and use that revenue to support small businesses in building safety infrastructure. That would be a pragmatic, reality-based approach. You cannot change the world overnight just with propaganda and agitation."
— The government is treating the extension of retirement age as one pillar of labor reform. This issue is closely linked to youth employment. How should we approach such a structural problem?
▲ "The intention is good. But if the retirement age is extended, the main beneficiaries will be employees of large corporations and public institutions. If you extend the retirement age first without linking it to wage system reform, will unions agree to wage reforms that they find burdensome? If you leave the wage system as it is and only extend the retirement age, the number of quality jobs will shrink and young people will increasingly find themselves with nowhere to go."
— Companies are already voicing concerns about the overall direction of labor reform, but these concerns are not well reflected in policy.
▲ "When it comes to labor-management issues, a labor organization does not stop after making a public demand. It continues informal communication with the government to push its demands through. Our business lobby group is different. Once it issues a statement, that is the end of it. They need to be more proactive. For example, regarding the extension of retirement age, if companies autonomously operate wage system reforms and continued employment systems and then encourage their spread across the industry, that could become the prevailing trend. The government could then adjust the institutional framework in line with that trend."
— How would you assess the current administration’s achievements and shortcomings in the labor field?
▲ "Following the Moon Jae-in administration, it is again emphasizing respect for labor. You could call it 'Respect for Labor, Season 2.' On the positive side, by declaring itself pro-labor, the administration has increased policy predictability in areas such as protecting workers’ safety and expanding their rights. On the other hand, it is failing to resolve conflicts because it leans too heavily toward the labor sector, and the job-creating base of companies is weakening." (In both his written responses and in-person interview, Lee used very measured language when discussing the current administration’s labor reform. When asked whether this meant he recognized some achievements, he replied that if one had to put it that way, perhaps, but that true respect for labor is something else entirely. He then added:) "Right now, labor-management relations are too confrontational, regressive, and rushed. If your feet are frostbitten and you pour boiling water on them, you get gangrene. You have to warm them up slowly. If you suddenly pour scalding water on them, you ruin everything."
syhong@fnnews.com Reporter