(EDITORIAL from Korea JoongAng Daily on Aug. 18)

The government of South Korea must address labor disputes regarding the "Yellow Envelope" act and other issues to preserve strategic investments at home. Alphabet, Google's U.S. parent company, has discretion over bonuses and compensation. In Japan, bonuses are typically agreed upon through negotiations based on monthly salaries.

France operates a statutory profit-sharing system, but labor and management do not decide the distribution amount; it is determined by a legal formula, with a maximum payout of around 58 million won ($39,400). These examples, shared by the Korea Enterprises Federation, highlight the divergence between domestic demands and international practices.

Concerning efforts by unions to interfere with major management decisions, such as constructing new factories, Samsung Electronics' supra-enterprise union has threatened to make the establishment of a semiconductor plant a bargaining point in 2027. If unions continue to encroach on management rights, Korea may miss crucial investment windows in strategic industries like semiconductors. Companies might then opt to invest overseas instead of domestically.

The Ministry of Employment and Labor plays a crucial role in resolving disputes over profit-linked bonuses and union interference in management decisions. The Trade Union and Labor Relations Adjustment Act's definition of a labor dispute must be clarified. If the law remains ambiguous, revisions to subordinate regulations will only go so far.

The Korea Enterprises Federation also calls for increased labor flexibility to boost the competitiveness of planned megaspecial zones. This includes allowing overtime to be calculated over longer periods rather than weekly, and proposing a "white-collar exemption" from working-hour regulations for highly paid research and development employees.

These suggestions should not be overlooked simply because they come from an employers' organization. Without a degree of labor flexibility similar to that found in countries like the United States, Japan, and China, megaspecial zones cannot thrive. The government must actively resolve contentious labor-management issues; otherwise, it risks becoming part of the problem itself.