[ Translation of article ]

1. Government Declares ‘War on Industrial Accidents’… Business Groups Push Back, Citing Economic Impact

Upon taking office, the Lee Jae-myung government designated the reduction of industrial accidents as a national priority and formally declared a “war on industrial accidents.”

The government set a target of reducing the workplace fatality rate from the current 0.39 deaths per 10,000 workers to 0.29 by 2030, matching the OECD average.

To achieve this goal, the administration introduced stringent enforcement measures, including: • Fines of up to 5% of annual operating profit, with a minimum of 30 billion won, for corporations recording three or more industrial accidents per year; and • Deregistration sanctions against construction firms repeatedly involved in fatal accidents.

At a Cabinet meeting in July, President Lee told Employment and Labor Minister Kim Young-hoon to “stake his job” if industrial accidents failed to decline. Minister Kim responded, “I will stake my job,” signaling strong resolve.

Despite these measures, industrial accidents have not decreased and have instead risen, prompting criticism that the government’s “war” has so far fallen short.

By the third quarter of this year, the number of deaths subject to accident investigations totaled 457, an increase of 14 deaths (3.2%) from the previous year’s 443. This marked the first year-on-year increase since statistics began being compiled in 2022. Repeated safety incidents at small-scale workplaces were cited as the primary cause.

The Ministry of Employment and Labor, however, noted that workplace fatality figures are a lagging indicator, arguing that it typically takes at least one year for policy effects to become visible.

2. Retirement Age Extension, Yellow Envelope Act, and Semiconductor Special Act: Intensifying Labor–Management Conflict

Discussions on extending the mandatory retirement age have been ongoing since the previous administration through tripartite social dialogue under the Economic, Social and Labor Council (ESLC).

However, deliberations came to a halt following former President Yoon Suk-yeol’s declaration of martial law. Subsequently, public-interest members of the ESLC’s Continuing Employment Committee proposed maintaining the current statutory retirement age of 60, while obligating employers to retain workers who wish to continue working until 65. This proposal was criticized as a partial agreement reached without labor participation, and discussions effectively stalled.

Following the inauguration of the Lee Jae-myung government, social dialogue mechanisms resumed, led by the National Assembly. Talks on extending the retirement age restarted, but deep divisions between labor and management persisted over how to implement the policy. As the year drew to a close, negotiations failed to produce an agreement.

As a result, responsibility has shifted to the Democratic Party, which has already presented three legislative options combining statutory retirement age extension with post-retirement reemployment. Observers expect one of these options to be enacted into law. Nonetheless, all three proposals face opposition: labor groups argue that the timeline for raising the retirement age is too slow, while business groups contend that any statutory extension would impose excessive burdens on companies. Even after final legislation, implementation is expected to face significant obstacles.

The Yellow Envelope Act, which had been vetoed twice by the previous administration and finally passed on its third attempt under the new government, is another major flashpoint. Critics have labeled it a “labor movement wish list,” arguing that it goes further than previous versions. While business opposition remains strong, recent Labor Ministry proposals to include single bargaining channel requirements in the enforcement decree have triggered backlash from labor groups as well, suggesting a difficult path ahead before implementation.

Meanwhile, the controversial provision in the Semiconductor Special Act exempting research personnel from the 52-hour workweek was ultimately removed from the final bill, following intense partisan conflict earlier this year.

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[ Translation of article ]

1. Government Declares ‘War on Industrial Accidents’… Business Groups Push Back, Citing Economic Impact

Upon taking office, the Lee Jae-myung government designated the reduction of industrial accidents as a national priority and formally declared a “war on industrial accidents.”

The government set a target of reducing the workplace fatality rate from the current 0.39 deaths per 10,000 workers to 0.29 by 2030, matching the OECD average.

To achieve this goal, the administration introduced stringent enforcement measures, including: • Fines of up to 5% of annual operating profit, with a minimum of 30 billion won, for corporations recording three or more industrial accidents per year; and • Deregistration sanctions against construction firms repeatedly involved in fatal accidents.

At a Cabinet meeting in July, President Lee told Employment and Labor Minister Kim Young-hoon to “stake his job” if industrial accidents failed to decline. Minister Kim responded, “I will stake my job,” signaling strong resolve.

Despite these measures, industrial accidents have not decreased and have instead risen, prompting criticism that the government’s “war” has so far fallen short.

By the third quarter of this year, the number of deaths subject to accident investigations totaled 457, an increase of 14 deaths (3.2%) from the previous year’s 443. This marked the first year-on-year increase since statistics began being compiled in 2022. Repeated safety incidents at small-scale workplaces were cited as the primary cause.

The Ministry of Employment and Labor, however, noted that workplace fatality figures are a lagging indicator, arguing that it typically takes at least one year for policy effects to become visible.

2. Retirement Age Extension, Yellow Envelope Act, and Semiconductor Special Act: Intensifying Labor–Management Conflict

Discussions on extending the mandatory retirement age have been ongoing since the previous administration through tripartite social dialogue under the Economic, Social and Labor Council (ESLC).

However, deliberations came to a halt following former President Yoon Suk-yeol’s declaration of martial law. Subsequently, public-interest members of the ESLC’s Continuing Employment Committee proposed maintaining the current statutory retirement age of 60, while obligating employers to retain workers who wish to continue working until 65. This proposal was criticized as a partial agreement reached without labor participation, and discussions effectively stalled.

Following the inauguration of the Lee Jae-myung government, social dialogue mechanisms resumed, led by the National Assembly. Talks on extending the retirement age restarted, but deep divisions between labor and management persisted over how to implement the policy. As the year drew to a close, negotiations failed to produce an agreement.

As a result, responsibility has shifted to the Democratic Party, which has already presented three legislative options combining statutory retirement age extension with post-retirement reemployment. Observers expect one of these options to be enacted into law. Nonetheless, all three proposals face opposition: labor groups argue that the timeline for raising the retirement age is too slow, while business groups contend that any statutory extension would impose excessive burdens on companies. Even after final legislation, implementation is expected to face significant obstacles.

The Yellow Envelope Act, which had been vetoed twice by the previous administration and finally passed on its third attempt under the new government, is another major flashpoint. Critics have labeled it a “labor movement wish list,” arguing that it goes further than previous versions. While business opposition remains strong, recent Labor Ministry proposals to include single bargaining channel requirements in the enforcement decree have triggered backlash from labor groups as well, suggesting a difficult path ahead before implementation.

Meanwhile, the controversial provision in the Semiconductor Special Act exempting research personnel from the 52-hour workweek was ultimately removed from the final bill, following intense partisan conflict earlier this year.