-KTX-SRT integration puts an end to the privatization debate
-'White-collar exemption'? Labor, management, and government must pool their wisdom
-Bonuses pegged to 'N% of operating profit' to be excluded from labor disputes
-Pre-tax bonus demands raise concerns over corporate competitiveness and dampened investment
-Labor-management relations cannot be severed with a single stroke…Trust must be built
-Under new guidelines, strikes demanding bonuses at Samsung Electronics would be illegal
-Guidelines instead of enforcement decree? Building practices into an established system
-Institutionalizing first could rather spark more disputes
-3.3 trillion won invested in youth jobs…Largest budget in history
-Supporting youth career development through the 'K-New Deal Academy'
-No one stays young forever… Even extending the retirement age today is late
 
■ Broadcast: SBS Kim Tae-hyun's Political Show (FM 103.5 MHz 7:00 – 9:00)
■ Date: September 8, 2026 (Tuesday)
■ Host: Attorney Kim Tae-hyun
■ Guest: Kim Young-hoon, Minister of Employment and Labor
 
[Kim Tae-hyun] : A labor exemption to the 52-hour workweek is being pursued for the Honam Semiconductor Mega Cluster. The Ministry of Employment and Labor also issued guidelines stating that demands for bonuses linked to operating profit, so-called "N% performance bonuses," can hardly be considered subjects of legitimate labor disputes. Does this mean that strikes making such demands will now become illegal? Where does the government draw the line between labor rights and corporate competitiveness? We will ask Kim Young-hoon, Minister of Employment and Labor, directly. Minister, hello.
 
[Kim Young-hoon] : Hello.
 
[Kim Tae-hyun] : Minister, it has been a while.
 
[Kim Young-hoon] : Thank you for having me.
 
[Kim Tae-hyun] : Minister, Chuseok is coming soon. Speaking of Chuseok, many people will be booking train tickets.
 
[Kim Young-hoon] : Bookings started yesterday.
 
[Kim Tae-hyun] : Yes. And recently, the integrated operation of KTX and SRT began.
 
[Kim Young-hoon] : That is correct.
 
[Kim Tae-hyun] : You used to be a train driver and also served as head of the Korean Railway Workers' Union. You must have deep feelings about this.
 
[Kim Young-hoon] : Saying I am deeply moved might sound too cliché, but it feels like seeing everything return to where it belongs, which is the most beautiful scenery in the world. You could view it as things going back to their proper place. I believe this integrated operation goes beyond simply fulfilling a campaign pledge and carries several meanings. In short, I believe it has put an end to the controversy over privatization that had long dominated our society.
 
[Kim Tae-hyun] : Yes.
 
[Kim Young-hoon] : The reason a functioning railway was split into two was a preliminary step toward privatization. We call it "cherry-picking." When privatizing, a buyer doesn't buy everything; they only buy profitable assets. The SRT, which departs from Suseo, is a prime route that anyone could see would immediately generate profit, even if I were to step in as CEO, yet they split that off from the existing network. As a result, Korail operated KTX and used those profits to cross-subsidize local regional lines, causing that entire ecosystem to collapse. It was an abnormal structure. When splitting it, because privatization sparked controversy, they argued it was not privatization but a competitive system, claiming that a single monopoly leads to lax management. However, no competitive effect ever materialized. For example, someone near Seoul Station wouldn't travel an extra hour to Suseo just because they dislike KTX.
 
[Kim Tae-hyun] : That is true.
 
[Kim Young-hoon] : In the end, it became regional monopolies. The train cars are identical, too. As you can see, KTX and SRT are now running under integrated operations. That is possible because they are the exact same train model. Only the colors are different. The loss from splitting the system was far greater than any competitive effect. In particular, people in the Suseo area had an extremely hard time getting tickets. That is because only eight-car trains could fit in there.
 
[Kim Tae-hyun] : At Suseo Station?
 
[Kim Young-hoon] : That is right.
 
[Kim Tae-hyun] : My home is close to Seoul Station, so I only take KTX.
 
[Kim Young-hoon] : Exactly. You have no reason to go to Suseo.
 
[Kim Tae-hyun] : There is no reason for me to go there.
 
[Kim Young-hoon] : Traveling from Suseo to Seoul Station already takes an hour, so it was completely meaningless. They called it a competitive system, but it only compounded inconvenience. From the public's standpoint, seat capacity will now increase: from 15,000 seats a day to 17,000 on weekends. For this Chuseok holiday alone, an additional 70,000 seats will be provided across the five-day period. Fares will decrease by 10%. Safety will also be strengthened. Previously, because they were competing companies, if one broke down, the other avoided getting involved. There was no incentive to help a competitor.
 
[Kim Tae-hyun] : So now they complement each other?
 
[Kim Young-hoon] : Precisely. Furthermore, many may not know this, but when President Lee Jae-myung was a lawmaker, the very first bill he introduced was the public corporation anti-privatization act.
 
[Kim Tae-hyun] : Is that so?
 
[Kim Young-hoon] : There is great significance in fundamentally preventing the privatization of national key industries. A functional reorganization of public institutions was also announced recently. Aside from railways, a prime example of division was splitting the power generation company into five separate entities. Even though they split into five power generation companies, can they really compete?
 
[Kim Tae-hyun] : An announcement was made to merge them this time.
 
[Kim Young-hoon] : An announcement was made to merge them. For example, the largest cost for power generation companies is purchasing fuel. If one large company buys it, they can make joint bulk purchases.
 
[Kim Tae-hyun] : Because that lowers unit prices.
 
[Kim Young-hoon] : It lowers unit costs, but when split into five, you just end up with five CEOs. What benefit does that bring to the public?
 
[Kim Tae-hyun] : In any case, the debate over railway privatization that had persisted for so long has been completely put to rest this time.
 
[Kim Young-hoon] : Not long ago, the President mentioned that after 30 years, our nation had finally repaid all its IMF debts. If you trace it back, this started from the IMF's demands to promptly sell off national key industries. I believe the time has come to settle that debt as well.
 
[Kim Tae-hyun] : Understood. Wishing everyone success in booking Chuseok train tickets, let us move on to pending issues. Minister, regarding the mega cluster, the special bill being pursued by the ruling party and the government reportedly includes a "white-collar exemption" (exempting high-earning managerial and professional workers from working hour regulations). What exactly is this about?
 
[Kim Young-hoon] : My English is not great, but "white-collar" refers to professional workers, and "exemption" means an exception. It means granting an exception to working hour limits for professionals.
 
[Kim Tae-hyun] : From the 52-hour limit.
 
[Kim Young-hoon] : Yes. It aims to remove regulations. As an exemption, for high-income white-collar professionals, it would exempt caps on overtime pay, holiday pay, and night shift pay.
 
[Kim Tae-hyun] : For instance, regarding semiconductors, there have been reports that research staff in China or Taiwan work through the night on research, while we are falling behind in speed because we are held back by the 52-hour workweek cap. Is this an answer to that criticism?
 
[Kim Young-hoon] : In the end, it comes down to that issue: national competitiveness. There can be criticism that competitor countries like China are chasing us closely or that we need to catch up, but we are unable to do so due to this regulation. When enacting the Semiconductor Special Act previously, this controversy arose as well. That is why, for researchers mentioned by the anchor, especially semiconductor researchers, we have a system allowing special extended work hours as an exemption. However, the government has not yet finalized its exact stance on whether to include all sectors this time. It is true that industry continues to demand it. What I want to emphasize is that we need flexibility. For example, when inspiration strikes, we need to focus intensively; you cannot just say, "Well, it is clock-out time, so I will stop my research here and head home." People can argue that makes no sense.
 
[Kim Tae-hyun] : Yes.
 
[Kim Young-hoon] : I agree with that point. It is right to row when the tide comes in. However, granting an unlimited exemption is a completely different matter that must be examined carefully.
 
[Kim Tae-hyun] : Yes.
 
[Kim Young-hoon] : Another point is China's pursuit. In China, there is the "996" practice—working from 9 a.m. to 9 p.m., six days a week. Of course, that is illegal even under Chinese law, but I would like to say this: while it is true China is chasing us rapidly, realistically, which country can beat China through sheer quantity? I believe we must compete through more innovative methods. In this sense, if labor, management, and the government pool their wisdom, I believe we can find our own sustainable method that offers flexibility while protecting health rights and enhancing corporate productivity.
 
[Kim Tae-hyun] : So the overarching framework is to pursue flexibility, but specific lines are still under discussion.
 
[Kim Young-hoon] : A short while ago, the President held a tea meeting with the heads of the two major labor umbrella unions, where this was discussed extensively. The President suggested that regarding labor exemptions, labor, management, and government—including businesses—should put their heads together for further discussion. We plan to make such proposals soon.
 
[Kim Tae-hyun] : Understood. And Minister, there is this issue: drawing the line between labor rights and management rights is truly difficult.
 
[Kim Young-hoon] : That is correct.
 
[Kim Tae-hyun] : There is another issue: so-called "N% performance bonuses." The ministry issued guidelines stating that labor unions demanding bonuses pegged to a company's operating profits during collective bargaining cannot be subject to labor disputes. In other words, demanding an N% bonus is not permissible. What is the background behind these guidelines?
 
[Kim Young-hoon] : As a legal professional, you understand this better than I do, but constitutional rights sometimes clash. That is how the world works.
 
[Kim Tae-hyun] : That is true.
 
[Kim Young-hoon] : There are the three basic labor rights, freedom of enterprise, shareholder rights, and also the rights of the state. Demanding an N% bonus based on operating profit became a major issue during negotiations at Samsung Electronics. The core concern is this: a company generates operating profit through its activities. First, interest and financial costs must be handled, followed by taxes, then shareholder dividends, and then members should share what remains. But if a union demands its share be carved out first, like prepaid interest before taxes are even paid, is that appropriate?
 
[Kim Tae-hyun] : The President also pointed out that issue once.
 
[Kim Young-hoon] : That issue continued to weigh on the President's mind. In other words, it began from the question of how to harmonize situations when state rights and the three labor rights clash, or when freedom of enterprise clashes.
 
[Kim Tae-hyun] : Yes.
 
[Kim Young-hoon] : Regarding the demand for an N% bonus, the first thing I can say is that not all performance pay is excluded from labor dispute scope. But if funds are taken off the top even before paying taxes, foreign observers might form unnecessary misunderstandings, wondering if this country sets aside labor union shares before taxes. This could dampen investment and weaken corporate competitiveness. That is why our intention is to place limits on this specific type of bonus demand.
 
[Kim Tae-hyun] : Certainly, not all performance bonuses would fall under labor dispute targets.
 
[Kim Young-hoon] : That is right. From the corporate standpoint, companies have historically expanded the share of performance pay while reducing fixed wages, believing it allows for greater flexibility. If we were to restrict all of it now, the labor sector would never accept it.
 
[Kim Tae-hyun] : Then, while it cannot be applied retroactively, under these guidelines, the recent strike staged by the Samsung Electronics Super Enterprise Union would be considered an illegal strike.
 
[Kim Young-hoon] : Yes. Even during that dispute, they did not reach an agreement on a specific percentage of operating profit. However, looking at the intent, carving out a share from operating profits before anything else would be difficult to justify.
 
[Kim Tae-hyun] : But as is often the case in life, dissatisfaction arose from both sides regarding these guidelines.
 
[Kim Young-hoon] : That is true. They say taking criticism from both sides is part of my job. The business community points out that even though guidelines were issued, they do not carry the force of law.
 
[Kim Tae-hyun] : "What happens if this gets overturned in court?"
 
[Kim Young-hoon] : "What if it gets overturned?" Meanwhile, the labor sector argues, "After working so hard to pass the Yellow Envelope Bill, are you giving with one hand and taking back with the other?" Both sides may feel aggrieved. But I want to say this: the law, particularly laws governing labor-management relations, cannot resolve matters with a single sharp cut.
 
[Kim Tae-hyun] : That is true.
 
[Kim Young-hoon] : Yes. Precedents must accumulate. I believe what we lack is not institutions, but trust. When trust is lacking, any system introduced will have loopholes. No system is perfect. From a worker's perspective, there are legal criteria for layoffs. What is the requirement? "Urgent managerial necessity." What exactly constitutes an urgent managerial necessity? You cannot define every single instance in advance. Likewise, in labor relations, there are areas where judicial precedents must accumulate, and above all, trust must accumulate more than legal precedents.
 
[Kim Tae-hyun] : Could rigidly cementing it into law actually be more dangerous?
 
[Kim Young-hoon] : That is how I see it. Just as working hours must be applied flexibly, systems must be utilized flexibly. The moment you rigidly fix things and decree what is permitted and what is not, disputes will actually increase.
 
[Kim Tae-hyun] : It seems your message is to establish guidelines first and proceed based on mutual trust.
 
[Kim Young-hoon] : Under French law, there are no such regulations at all.
 
[Kim Tae-hyun] : Really?
 
[Kim Young-hoon] : Yes. Individual workers can go on strike. However, long-standing conventions accumulate and become institutionalized. I believe trying to build trust solely through systems is putting the cart before the horse.
 
[Kim Tae-hyun] : Understood. Minister, let us also examine structural issues across the entire labor market. Looking at the labor ministry's budget for next year's government spending, support for youth jobs has expanded significantly.
 
[Kim Young-hoon] : That is correct.
 
[Kim Tae-hyun] : What tangible changes will young people actually experience as a result?
 
[Kim Young-hoon] : As you mentioned, in next year's government budget proposal, we allocated 3.3 trillion won for youth jobs, an increase of 700 billion won compared to this year, making it the largest in history. In the past, despite pouring in budgets as if no remedy worked, youth employment showed little improvement. It is a deeply regrettable situation, and as the competent minister, I feel an indescribable sense of responsibility. One common criticism is that one-off cash handouts do not work. What do young people really want today? In my view, what they want is the ability to build genuine careers—how to build experience that allows them to be deployed immediately on the job. And even if they start at a small workplace, they want a ladder to advance to larger companies. In that sense, while we have various budget programs, what I truly want to highlight today is the program called the "K-New Deal Academy."
 
[Kim Tae-hyun] : The K-New Deal Academy?
 
[Kim Young-hoon] : The name may sound complex. It started this year as a pilot project with 8,200 participants. It allows young people to experience the actual on-the-job training currently being conducted at major corporations they prefer. After learning in school and trying to enter the workforce, they often find that what they learned has become outdated technology. This program shows them what kind of training major corporations preferred by youth—such as Hyundai Motor, Samsung Electronics, SK Hynix, and even HYBE or SM Entertainment—are providing to their employees. From the corporate side, they need to open up their on-the-job training (OJT) curricula. On the other hand, companies face their own dilemma: even when they want to hire young people, it is hard to tell from a single resume or an intense interview whether someone is a person they can work with for 20 or 30 years. That is a real concern. That is why they end up hiring experienced workers.
 
[Kim Tae-hyun] : Yes.
 
[Kim Young-hoon] : So I thought, why shouldn't the state resolve both dilemmas? If the state brings both sides together and covers training costs, young people can learn what is actually happening in the field, and companies can closely observe young talent while training them. Among them will be top performers whom companies might hire. We have allocated around 490 billion won to expand the K-New Deal Academy project to 50,000 participants next year. For those who are not hired right away, we maintain a space called "Playground" where they can stay, build communities, and receive ongoing support until they find employment. Above all, the core purpose of this job budget is for the state to support the career development process tailored to youth today.
 
[Kim Tae-hyun] : Understood. During last month's Ministry of Employment and Labor briefing, you mentioned plans to revise the law within this year and reflect it in next year's budget so that young people under 35 who voluntarily quit their jobs can receive job-seeking benefits once in their lifetime. However, there have been reports that this is facing difficulties in implementation.
 
[Kim Young-hoon] : That is correct. This was a national policy agenda item. In some countries, unemployment benefits are paid even for voluntary job resignations. In Korea, unemployment benefits have not been provided for voluntary quits. However, even if an exit is voluntary, young people often struggle to adapt in their early careers, so while the departure is technically voluntary in form, in substance it is often involuntary.
 
[Kim Tae-hyun] : Yes.
 
[Kim Young-hoon] : That is why we planned to allow it just once. What is the essence of a "New Deal"? Even if you lose all your money, you get one more card. We designed it with the thought of giving young people one more chance. However, criticisms arose that it could cause moral hazard or amount to populism, so it was not included in next year's budget proposal for now.
 
[Kim Tae-hyun] : This will likely be the final question. Minister, discussions on extending the retirement age are also underway.
 
[Kim Young-hoon] : That is right.
 
[Kim Tae-hyun] : On September 3, reports indicated that the President and the leaders of the two major labor umbrella unions agreed on the need to reach a conclusion within this year regarding legislation to extend the retirement age. How far has this progressed?
 
[Kim Young-hoon] : Regarding the retirement age extension, as I repeatedly say, I believe doing it even today is already late. The reason is not merely the income cliff facing those approaching retirement; we have reached a critical demographic cliff that shakes the very foundation of our nation through a sharp decline in the working-age population. In an era where people live to 100, cutting off employment at age 60 is far too low. Looking at our competitor Japan, they are already moving toward age 70. That is why we must extend the retirement age. The friction here stems from concerns that, with youth employment already difficult, this might add insult to injury. However, when we conduct opinion polls, people across both youth and middle-aged demographics largely agree on the necessity of extending the retirement age.
 
[Kim Tae-hyun] : Young people agree as well?
 
[Kim Young-hoon] : Young people agree too. Because from their perspective, no one stays young forever. In the end, it will become their own issue. However, where retirement extension clashes is over about 20% of jobs. If you look at regional areas outside the capital, it is not retirement age that prevents young people from entering jobs. Where does the conflict arise? In good jobs such as the public sector, large conglomerates, and financial institutions. If older workers stay longer and positions disappear, young people worry where they are supposed to go. That is why the President also emphasized that retirement age extension must go hand in hand with resolving this specific concern.
 
[Kim Tae-hyun] : Understood. You shared many valuable insights today, and we will conclude today's interview here. That was Minister of Employment and Labor Kim Young-hoon. Thank you.
 
[Kim Young-hoon] : Thank you.

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