South Korean labor and government begin talks on Mega Special Zone deregulation

Labor, management, and government representatives have launched a specialized social dialogue to discuss labor deregulation within the proposed Mega Special Zone Special Act. The first working-level meeting was held on September 22, marking the first time the Korean Confederation of Trade Unions (KCTU) and the Korean Trade Union Congress (KTU) have participated in such tripartite talks since 2020.

The government, led by the Ministry of Employment and Labor, aims to introduce labor exemptions to foster economic growth in strategic zones. Proposed measures include a ‘white-collar exemption’ to exclude high-income R&D professionals from the 52-hour maximum work week, extending the use of fixed-term workers from two to four years, and expanding the scope of permitted dispatched labor.

However, labor groups are signaling strong resistance. The KCTU has launched a joint action with civil society organizations to oppose the act, arguing it bypasses social safety nets like environmental impact assessments and undermines labor rights. Both major unions have demanded that discussions begin from a ‘zero-base’ without the prerequisite of accepting labor exemptions. While the government seeks to pass the legislation within the year, significant conflict is expected regarding the scope and direction of the agenda.