Kim Jihyung, Chair of the Economic, Social and Labor Council: "N% Performance Bonus to Be Discussed as Social Dialogue Agenda"

Kim Jihyung, Chair of the Economic, Social and Labor Council, stated that the Council is considering addressing the issue of "performance bonuses as a percentage of operating income" as part of its agenda for social dialogue. He also expressed a welcoming stance toward the move by the Korean Confederation of Trade Unions (KCTU) to return to social dialogue.

At a press conference held on the 11th at the main conference room of the Economic, Social and Labor Council in Jongno-gu, Seoul, Chair Kim said, "Labor and management have opposing views on whether performance-based bonuses should be an item for collective bargaining," and added, "We have been conducting an internal review on the possibility of adopting this issue as a social dialogue agenda for the Council." He continued, "Once the internal review is complete, I believe it would be appropriate to officially propose the issue as an agenda item for social dialogue, following practical discussions among labor, management, and government, which are the stakeholders in the dialogue." However, he clarified that "this is not yet finalized."

Chair Kim pointed out that the business community and labor unions are currently locked in a standoff over whether performance bonuses should be subject to collective bargaining. He explained, "The Korea Employers Federation, representing management, maintains that this should not be subject to bargaining, while both major labor federations representing the workforce assert that it should. There are also differing opinions among the academic and legal communities." He went on to emphasize that, "Whether or not this issue is subject to collective bargaining does not offer an immediate solution," noting that a final court ruling could take significant time.

Chair Kim recalled that, during the controversy over Samsung Electronics' bonuses, there had been widespread calls for rational standards and principles regarding the distribution of management performance to be established through social dialogue, and with this in mind, he underscored the need for such discussions.

Kim Jihyung, Chairman of the Economic, Social and Labor Council (ESLC), held a briefing on the launch of the first-term ESLC under the new government on the 18th at the ESLC main conference room in Jung-gu, Seoul. Photo by Yonhap News

Welcoming KCTU's Return...Addressing "52-Hour Workweek" Exemptions through Dialogue with Labor Unions

Chair Kim expressed strong support for the possibility of the KCTU participating in the Council. Regarding the KCTU's recent position on social dialogue, he said, "I see it as a significant step forward," and, "We regard this as very good news." He added, "We have long hoped that the KCTU would participate in the Council as the representative of labor, in order to create a fully inclusive social dialogue mechanism as outlined in the Council Act. We are pro-actively hoping for, and looking forward to, the KCTU's participation." However, he also noted that further discussions remain within the KCTU and that it is necessary to wait for their final decision regarding participation conditions.

On the issue of exempting certain sectors, such as semiconductor mega-clusters, from the 52-hour workweek, Chair Kim stressed the importance of simultaneously seeking ways to address labor's concerns. He said, "Not only labor representatives, but the general public as well, presumably agree on the need for the nation to mobilize all of its core capabilities to strengthen and develop the competitiveness of advanced industries like semiconductors, physical AI, and AI data centers." However, he also pointed out, "Provisions known as 'special cases related to labor' are core points of concern among unions. Thus, it is necessary to also consider measures to address such concerns as part of our review."

He added that, as this issue is expected to be dealt with in the National Assembly as a legislative matter, the Council should refrain from taking a separate position at this stage. However, he pledged, "If the President requests advice or if consensus-building among labor, management, and government calls for the Council to take up the issue for social dialogue, we will not hesitate to actively promote such dialogue."

Since the launch of the new administration, Chair Kim has emphasized "direction" rather than "speed" as the Council's principle in social dialogue. Since its establishment in March, the Council has set up 16 committees, 14 of which (excluding 2 research bodies) have been launched and are in ongoing discussions. He shared the President's advice that "rather than rushing to agreement, it is necessary to take time to thoroughly hear each other's views and build mutual understanding and empathy," and pledged, "No matter how difficult the process, we will continue dialogue until consensus is achieved."

He further stated, "Rather than being impatient for visible results, we consider it a true achievement to ensure the process of dialogue continues without interruption," and, "Our focus will be on substantive social dialogue that leads to real changes, rather than on superficial discussions."

Chair Kim also announced plans to promote social dialogue with active citizen participation, especially centered on the Special Committee on Population Structure Changes and Job Public Discourse. Instead of simply polling for or against predetermined policies, citizens will be encouraged to directly identify specific agenda items and seek tangible solutions through a "task-design type citizen debate." Regarding social dialogue in the AI transition era, he said future discussions would need to address the social sharing of benefits generated by AI. However, he cautioned that, as consensus has yet to be formed on issues such as the scope and means of sharing AI's excess gains, extensive discussions will be required moving forward.

This content was produced with the assistance of AI translation services.