How far will Lee Jae-myung's pro-labor stance go?

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How far will Lee Jae-myung's pro-labor stance go?

Published: 21 May. 2025, 00:02 Updated: 20 May. 2025, 19:35

Audio report: written by reporters, read by AI

Ko Jung-ae

The author is the editor-in-chief at the JoongAng Sunday.

Lee Jae-myung, the presidential candidate for the Democratic Party (DP), demonstrated political skill during the first televised debate of the campaign. But he was not exactly consistent. One standout moment involved his support for the so-called “Yellow Envelope Act,” a controversial labor bill. While he offered vague, conciliatory answers on most issues, his stance on this bill was unambiguous. When asked whether he would push the bill forward if elected, even after two presidential vetoes under the current administration, he replied simply, “Of course we must do it.”

Lee’s statement implied that the bill is in line with legal precedent. “The Supreme Court has already acknowledged its necessity,” he claimed. That assertion, however, is misleading.

The presidential candidates pose for a photo at the SBS Prism Tower in Mapo District, western Seoul, on May 18. From left: Kim Moon-soo of the People Power Party, Kwon Young-guk of the Democratic Labor Party, Lee Jun-seok of the Reform Party and Lee Jae-myung of the Democratic Party. [JOINT PRESS CORPS]

The Yellow Envelope Act, as proposed by the DP, contains four major provisions: broadening the legal definitions of “worker” and “employer,” expanding the scope of permissible labor actions from the “determination of working conditions” to a broader concept of “working conditions,” shielding illegal acts during strikes from damage claims and exempting workers from joint liability for collective unlawful acts. Critics argue that the bill overwhelmingly favors labor unions and infringes on the rights of employers. Many legal scholars believe that if enacted, it would likely be ruled unconstitutional by the Constitutional Court. Cha Jin-a, a law professor at Korea University, is among those who have voiced strong concerns about the bill’s legal standing.

Only the fourth provision has ever been loosely connected to a Supreme Court decision. In a 2023 ruling, the court’s third division, led by Justice Noh Jeong-hee, handled a case in which Hyundai Motor sought damages from unionized contract workers who had engaged in an illegal factory sit-in. The court ruled that liability should be assessed individually, based on each participant’s degree of involvement. Some interpreted this as a shift toward requiring employers to prove individual wrongdoing in collective labor disputes.

Citizens watch the broadcast of the first presidential debate at Seoul Station in Jung District, central Seoul, on May 18. [YONHAP]

But the Supreme Court quickly clarified that the ruling merely applied existing precedent and did not transfer the burden of proof to employers. It was a panel ruling, not a decision from the full bench, and thus carried limited interpretive weight. Lee’s claim that the court had “acknowledged” the Yellow Envelope Act was, to borrow his own debate language, “extreme.”

In practice, damage suits are among the few tools companies have to push back against illegal union activity. As one business leader put it, “It’s our only weapon.” Lee has in the past called on companies to drop such claims. Now, with the Yellow Envelope Act, that pressure would become obsolete — the bill would remove the very mechanism for recourse.

Lee’s remarks on extending the retirement age also drew attention. When Reform Party candidate Lee Jun-seok raised concerns that prolonging retirement would reduce job opportunities for young people, Lee Jae-myung replied, “Many in the younger generation support this. The jobs held by those with extended retirement and the jobs young people are seeking do not necessarily overlap.” When the Reform Party candidate pressed him — “How can youth employment increase if older workers stay longer?” — the DP front-runner shot back, “That’s too extreme.”

But the tension between older and younger workers over quality jobs is real. If the cost of retaining senior workers is significantly higher than hiring new entrants, then extending the retirement age could directly squeeze youth hiring. Economist Yoon Hee-sook, in her book "The Betrayal of Policy," notes that the current push for a retirement extension is closely tied to the fact that union leadership today tends to be nearing retirement themselves. That observation appears to hold merit.

Lee describes himself variously as a “pragmatic conservative” and, playing on a Korean pun, “not left-wing or right-wing, but both” — a phrase colloquially rendered in Korean as “yang-pa,” a homonym for “onion.” In some areas, he may indeed show ideological flexibility. Some observers believe that if elected, he might govern more pragmatically than he campaigns. But there are also aspects of his politics that seem less negotiable.

Lee Jae-myung, leader of the Democratic Party, speaks during a meeting held at the Korean Confederation of Trade Unions headquarters in Jung District, central Seoul, on Feb. 21. [NEWS1]

Two, in particular, stand out: his combative stance toward the judiciary and his deep alignment with organized labor. In past statements, he has openly thanked the Korean Confederation of Trade Unions, saying, “Thank you for your hard work — I will do everything to ensure it was not in vain.” His sympathy for unions was evident again in the latest debate.

The central question is whether this posture is compatible with the economic growth he has also pledged. Former President Roh Moo-hyun, though originally backed by labor, eventually found himself in open conflict with the unions. Lee’s increasingly explicit identification with organized labor raises questions about whether he might follow a similar path — or whether he might go even further.

Lee’s labor policies may resonate with his political base, but they also expose him to criticism for being overly ideological at a time when pragmatic solutions are in short supply. As the campaign unfolds, his ability to balance those competing pressures will become a critical test — not just of his leadership, but of how far his pro-labor stance will go.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.