Constitutional Court. (Image courtesy of Yonhap)
SEOUL, April 5 (Korea Bizwire) — The impeachment and removal of former President Yoon Suk-yeol on Friday has thrown the South Korean government’s labor reform agenda into disarray, raising uncertainty over the future of key workplace policies just as the country enters a snap presidential election cycle.
While the ruling party had continued to push labor reform initiatives following Yoon’s impeachment motion last year — including efforts to ease the 52-hour workweek rule — policy momentum is now expected to stall amid the political vacuum and looming power shift.
Analysts suggest that if the ruling bloc retains power in the 2025 election, the current policy direction may survive. But a change in administration could trigger a fundamental reset, particularly given the stark ideological divide between conservative and progressive views on labor policy.
Reform Momentum Fades as Labor Policy Divides Reemerge
Even before the December 3 martial law crisis, Yoon’s labor reform efforts — including flexible work hour policies — faced significant opposition from civil society and opposition parties. Key progressive proposals, such as the controversial “Yellow Envelope Law” aimed at strengthening union protections, were repeatedly vetoed by the presidency despite passing the National Assembly twice.
With Yoon’s removal, the broader labor agenda is rapidly losing steam. The ideological contrast between camps is expected to shape the post-election policy landscape: conservatives tend to emphasize productivity and worker training, while progressives prioritize worker protections and reduced working hours.
The current administration sought to revise the 52-hour cap to improve efficiency, while the opposition has championed more radical proposals like a four-day workweek. The Yellow Envelope Law is also expected to be reintroduced by the opposition, possibly gaining new traction under a new administration.
Other policies, including the so-called “Labor Protection Law” for vulnerable workers and mandatory union financial disclosures — hailed by the outgoing government but criticized by labor groups — are also likely to be reconsidered. The latter policy, based on presidential decree, could be reversed unilaterally by the next government.
Should the ruling bloc retain power, it may press forward with even greater resolve, though it would still face stiff resistance from the opposition-controlled legislature.
Critical Employment Talks Face Tight Deadline
Among the most urgent unresolved issues is the question of “continued employment” for aging workers. The Economic, Social and Labor Council — South Korea’s top tripartite dialogue body — has committed to delivering either a labor-management-government consensus or an alternative proposal from public members by the end of April.
The council’s talks have been clouded by the Korean Confederation of Trade Unions’ (KCTU) boycott following the martial law declaration. While the federation has yet to formally state whether it will rejoin negotiations, it has long opposed the current approach of reemployment over extending the statutory retirement age.
If KCTU remains absent, the council may expedite the release of a public members’ proposal, effectively bypassing union consent. Even if the union rejoins, there are doubts it will endorse any conclusions reached during its absence.
“The upcoming election casts a shadow over the legitimacy of any agreement,” a KCTU official said. “Even if we return to the table, it’s unclear whether we can endorse decisions shaped without labor’s voice.”
With a presidential transition looming and policy paths diverging, the future of South Korea’s labor landscape now rests heavily on the outcome of the 2025 election.
Ashley Song (ashley@koreabizwire.com)
