FKI Discusses Labor Reform with Ministry of Employment... "Time to Address Labor as Well as ESG and Environment"

Invitation of Minister Lee Jeong-sik of Employment and Labor
6th K-ESG Alliance Meeting Held

There is a growing voice in the business community that corporate ESG (Environmental, Social, and Governance) management has been overly focused on the 'Environment (E)' aspect and that more attention should be paid to the 'Social (S)' sector, including labor reform.

On the 12th, the Federation of Korean Industries (FKI) announced that it held the '6th K-ESG Alliance Meeting' by inviting Lee Jeong-sik, Minister of Employment and Labor. At the meeting, the Ministry of Employment and Labor gave a keynote presentation on the theme of 'Building a Labor Market of Sustainable Growth, Coexistence, and Solidarity' to 52 companies and institutions participating in the alliance.

Kim Yoon, Chairman of the K-ESG Alliance and Vice Chairman of the FKI, stated in his opening remarks that attention to social issues, including labor, within ESG is increasing. He emphasized the need to establish labor reforms and ESG management strategies that align with these changes.

Chairman Kim said, "Until now, ESG has been focused on the environment, but interest is gradually expanding to social issues," adding, "The European Union (EU) released a Social Taxonomy report last year, and Korea is also considering establishing a Korean-style Social Taxonomy, so it is necessary to prepare strategies accordingly." Social Taxonomy refers to a classification system that defines socially sustainable economic activities. It serves as a standard to judge whether corporate economic activities have provided quality jobs to workers, enhanced consumer benefits, and made local communities inclusive and sustainable.

Chairman Kim also pointed out that workers' values are gradually shifting toward emphasizing work-life balance (WLB) and rewards for performance. He stated that, for effective industrial accident prevention, it is desirable to shift from regulation and punishment to a direction where labor and management autonomously resolve issues.

Chairman Kim Yoon of the K-ESG Alliance (left) and Minister Lee Jeong-sik of the Ministry of Employment and Labor are seen exchanging greetings at the '6th K-ESG Alliance Meeting' held at the Federation of Korean Industries Building on the 12th.
[Photo by Federation of Korean Industries]

The government emphasized the need to create a culture where labor and management cooperate based on the rule of law. Minister Lee said in his greeting, "It is time to build a labor and industrial ecosystem of coexistence and solidarity to establish a sustainable growth foundation for Korean companies and the economy," adding, "Above all, it is essential to create a culture where primary contractors, subcontractors, labor, and management respect and trust each other."

Lee Jeong-han, Director of Labor Policy at the FKI, stated in his keynote presentation that it is necessary to recognize changed labor norms and practices and establish laws and systems suitable for the Korean labor market. Key policy tasks include establishing labor-management rule of law, improving the dual structure of the labor market, and addressing job insecurity.

The FKI said, "Companies showed strong interest in the government's core task of labor reform," adding, "Expanding autonomy between labor and management and labor reform aligned with global standards are very important tasks from an ESG perspective."

This content was produced with the assistance of AI translation services.