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Former union leader tapped as labor minister faces pressure to prove balance

Published: 25 Jun. 2025, 00:00

Kim Young-hoon, nominee for minister of employment and labor, prepares to operate an ITX-Maeum train at Gimcheon Station in North Gyeongsang on June 23. Kim is a train engineer at Korea Railroad Corporation (Korail) and a former chair of the Korean Confederation of Trade Unions (KCTU). [YONHAP]

President Lee Jae Myung’s first cabinet lineup signals a pragmatic and unconventional approach. In a break from tradition, a civilian was nominated for defense minister for the first time in 64 years, a private-sector expert was selected for industry, and a minister from the previous administration was retained. Among the most closely watched appointments is Kim Young-hoon, a former train operator and head of the Korean Railway Workers’ Union, nominated to lead the Ministry of Employment and Labor. Kim previously served as chair of the Korean Confederation of Trade Unions (KCTU) from 2010 to 2012.

His nomination marks the first time a former KCTU leader has been named labor minister, and comes at a moment when labor issues are intensifying. Key debates include the so-called “Yellow Envelope Law,” a proposed 4.5-day workweek, and raising the retirement age — all of which pit labor and management in direct opposition. The presidential office said Kim was chosen to reverse the previous administration’s “repressive labor policies” and to advance legislation aimed at protecting workers’ rights.

Business groups, however, are expressing concern that his appointment may usher in a wave of pro-union policies.

The new administration has emphasized resolving Korea’s dual labor market structure and strengthening labor rights. Yet in dealing with policies closely linked to employment, striking the right balance will be crucial. The Yellow Envelope Law, which would limit employers’ ability to seek damages from striking workers and broaden the legal definition of “employer,” could restrict business activity. A shortened workweek and later retirement age may also increase financial pressure on companies. Strengthening labor protections must not result in a tilted playing field.

As the new labor minister, Kim will need to develop policies that minimize negative side effects. The ministry has already indicated that revisions to the Yellow Envelope Law will be drafted with business concerns in mind. Any reform of work hours or retirement rules must also account for practical realities and the capacity of employers to adapt. Without jobs, labor rights are meaningless. Labor policy must reflect the broader economic landscape.

Kim Young-hoon, nominee for minister of employment and labor, answers questions from reporters as he arrives at the Seoul Regional Employment and Labor Office in Jung District, central Seoul, on June 24, where his confirmation hearing preparation office is located. [YONHAP]

Kim’s experience on the ground can be an asset in engaging with labor, but he must now act as a policymaker, not a union spokesperson. He should serve as a bridge between labor, management, and government. Bringing the KCTU back to the table for tripartite talks could help revive Korea’s stalled labor reform efforts.

Labor policy cannot focus solely on union demands. As of 2023, only 13 percent of Korean workers belonged to a union, meaning nearly nine out of 10 do not. Overemphasis on the two major labor federations, which mainly represent large firms and public-sector workers, risks sidelining the employment needs of non-union workers and the younger generation. If labor policy becomes narrowly aligned with union interests, the opposition’s warning that Kim’s nomination represents the KCTU’s “political invoice” may not be entirely unfounded.

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