President Lee Jae-myung: "Profit-Sharing Bonuses Should Not Be Subject to Labor Disputes"

President Lee Jae-myung stated on the 21st that he does not believe the issue of allocating a certain percentage of operating profits as performance bonuses—a topic currently causing controversy in some major companies like Samsung Electronics and SK Hynix—should be considered a subject for labor disputes.
During the 31st cabinet meeting he presided over at the Blue House this morning (the 21st), President Lee prefaced his remarks by saying it was his "personal opinion," and added, "Is the issue of distributing a certain percentage of operating profits truly a subject for labor disputes? I think it is more likely that it is not."
He further pointed out, "I also majored in labor law, and it seems that the scope (of what constitutes a subject for labor disputes) is being expanded too broadly."
In particular, President Lee noted, "When it was announced that a semiconductor plant would be built at the Gwangju military airport, the labor union claimed that this, too, was a subject for labor disputes, and there is talk that if an agreement is not reached, they will take extreme measures, which has surprised the public."
President Lee criticized this stance, saying, "The argument seems to be that because building a factory in Gwangju could lead to transfers, it becomes a subject for labor disputes. If you follow that logic, the exercise of management rights in any company would not be unrelated." He added, "If you start by using inheritance issues as an example, saying 'if you sell it to someone, they might become a vicious employer and worsen labor conditions,' there would be no end to it."
He also emphasized that rather than leaving all such matters to court decisions, the executive branch needs to take an active role in mediation through enforcement decrees and other measures.
"Legislation cannot determine everything. It is the job of the executive branch to create specific standards once legislation sets the comprehensive framework," President Lee said. "It is logically problematic to say that everything must be settled by court rulings and that the executive branch should not be involved."
He added, "The executive branch is a major implementing agency of the state, not a mere errand runner. The Ministry of Employment and Labor needs to clarify its guidelines, and the problem is that it is not doing so enough right now."
In relation to this, Minister of Employment and Labor Kim Young-hoon stated, "The management decision to build a large-scale semiconductor plant in Gwangju is judged not to be a subject for labor disputes."
(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.