Yang Kyung-soo: 'A Kospi of 8,000 is not a happiness index for workers'

Union criticizes delays in direct bargaining, profit-sharing gaps, AI transition

General strike set for July 15 to push for direct employer negotiations

Korean Confederation of Trade Unions Chairman Yang Kyung-soo speaks at a press briefing at the KCTU office in Jung-gu, Seoul, on Wednesday. [Yonhap]
Korean Confederation of Trade Unions Chairman Yang Kyung-soo speaks at a press briefing at the KCTU office in Jung-gu, Seoul, on Wednesday. [Yonhap]

The Korean Confederation of Trade Unions criticized the Lee Jae Myung government on the first anniversary of its launch, saying it sees "no solution in sight for labor market polarization," and announced plans for a general strike on July 15 to press for direct bargaining with primary employers.

KCTU Chairman Yang Kyung-soo said at a press briefing at the union's office in Jung-gu, Seoul, on Wednesday that "a Kospi of 8,000 is not a happiness index for workers." He added that the benefits of the semiconductor supercycle are not being shared broadly and that polarization in South Korean society is deepening.

Yang assessed the Lee government's labor policy over the past year as falling short across three areas: labor rights, wages and living standards, and industrial safety. "The trade union act was revised, but three months after it took effect, fewer than 10 out of some 500 eligible workplaces have actually sat down and begun negotiations," he said. "The real problem is that there are no employers willing to come to the table."

The KCTU also said the government itself has failed to act as a model employer. "Central government agencies are not responding to demands for labor-government negotiations, and of more than 240 local governments, only Hwaseong and Jeonju have agreed to bargain," KCTU spokesperson Jeon Ho-il said. "Because the government won't do it, companies are following suit and avoiding negotiations."

The distribution of performance bonuses and excess profits also emerged as a key issue. Yang said that when Samsung Electronics' union demanded a share of performance bonuses, it asked for up to 15 percent — "but no one talks about what happens to the remaining 85 percent." He called for a broader debate on whether excess profits should be treated as a matter of individual corporate management or as an issue for labor-management and society as a whole.

The KCTU said, however, that it would not include profit-sharing as an official agenda item for the July general strike. "The July general strike is precisely about breaking through the deadlock on direct employer bargaining," Yang said. "Performance bonus issues may be included in wage and collective bargaining talks at some workplaces, but we have no intention of making profit-sharing distribution a demand of the KCTU-wide general strike."

On the minimum wage, the KCTU put forward a demand of 13,070 won (about $9) per hour. Yang said the figure was "not a final confirmed position" but rather the union's proposal based on household living cost estimates, adding that the KCTU is consulting with the Federation of Korean Trade Unions on a joint labor position.

On industrial transformation and AI adoption, Yang said prior labor-management consultation is essential. "The introduction of AI is an unstoppable trend, but it must be discussed together with workers," he said. "Multilayered discussions are needed — at the workplace level, by industry, and across society as a whole."

On the retirement age, Yang renewed calls for a statutory extension tied to the age at which national pension benefits begin. He criticized proposals circulating within the Democratic Party to restructure wage systems, saying that giving employers authority to set pay during any extended retirement period "amounts to offloading low-wage, poor-quality jobs onto older workers."

On applying the Labor Standards Act to workplaces with fewer than five employees, Yang called for full and immediate coverage rather than a phased expansion. "It is absurd that workers at small businesses are denied paid leave and overtime pay," he said. "The burden on small business owners is something the government should address through direct support."

The KCTU plans to release an additional statement next week with leaders of major conglomerate unions on excess profits and performance-based distribution. "We will raise the question of how profits earned by companies posting enormous earnings should be shared with workers, subcontractors and local communities," Yang said.


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