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Future of Korea's labor market lies in 'diversity, autonomy,' says KEF chairman

Published: 09 Jun. 2025, 18:26

LIM JEONG-WON
[email protected]

Sohn Kyung-shik, chairman of the Korea Enterprises Federation, speaks on June 9 at the ILO’s 113th General Assembly in Geneva, Switzerland. [KOREA ENTERPRISES FEDERATION]

Facing what he called a storm of “unprecedented and complex challenges,” Sohn Kyung-shik, chairman of the Korea Enterprises Federation (KEF), used his platform at the International Labor Organization’s (ILO) annual gathering to call for sweeping labor reform and stronger cooperation between workers and employers.

Speaking Monday at the ILO’s 113th General Assembly in Geneva, Sohn warned that global economic turmoil, geopolitical instability, and technological disruption were threatening both growth and social cohesion — and that rigid labor rules were making things worse.

“Technologies such as AI, robotics, and automation are profoundly reshaping industrial structures and labor market,” said Sohn. “While new industries are growing and new jobs are being created, it is alarming that one out of five young people — our future generation — still remains unemployed without education or training. This shows the seriousness of the situation facing social partners.”

Sohn urged the ILO and member nations to embrace labor flexibility, including looser controls on working hours and broader adoption of performance-based pay. He argued that companies — not governments — are the main drivers of job creation, and they must be given more room to operate in a fast-changing world.

He also called for bold reform of “rigid and uniform regulations” that hinder corporate investment and employment.

“In the evolving business environment and labor market, workers and employers need to be allowed to manage their working hours more flexibly and performance-based wage system should be more widely adapted,” Sohn said.

“Social partners must join efforts to respond industrial and labor market transformation,” Sohn added. “It is our shared responsibility and obligation to cooperate toward sustainable growth and social integration for future generations.”

Arguing that the future of the labor market lies in “diversity and autonomy,” Sohn further called on the ILO “to respect each Member State’s national circumstances and diverse positions of all social partners in a balanced manner.”

After the General Assembly speech, Sohn met with ILO Director-Genearl Gilbert Houngbo to exchange views on labor market issues in Korea. Sohn also met with Roberto Suarez Santos, Director-General of the International Organization of Employers (IOE) and Mattias Thron, Employers’ Group spokesperson at the ILO.

The ILO’s General Assembly — held from June 2 to 14 — brings together representatives of labor, business and government from 187 member states. This year’s agenda includes setting international labor standards related to the platform economy, addressing biological risks and pushing forward the global transition to formal employment.

BY LIM JEONG-WON [[email protected]]