'Emergency Adjustment' Fronted by Industry Minister... Labor Minister with KCTU Background Says "No Union Is Established to Ruin a Company" (Comprehensive)

Kim Jungkwan Warns, "1 Trillion Won Lost Per Day... Losing Competitiveness Means Ruin"
Kim Younghoon Emphasizes, "If a Strike Isn't the Goal, Negotiation Is Inevitable... We Must Trust in Dialogue"
Labor Ministry Urges Caution on 'Emergency Adjustment' as Industry Ministry Takes the Lead, Both Appeal for Compromise Amid Two-Track Pressure

Kim Jonggwan, Minister of Trade, Industry and Energy

As the crisis of a general strike by Samsung Electronics' labor union intensifies, the heads of the government’s economic and labor ministries have each made earnest appeals for both labor and management to reach a compromise, albeit in different tones.

Kim Jungkwan, Minister of Trade, Industry and Energy, which oversees the industrial sector, has warned of an economic catastrophe resulting from the strike. He has also laid the groundwork for invoking the "emergency adjustment order," taking the lead on the matter. In contrast, Kim Younghoon, Minister of Employment and Labor, the competent authority, has maintained a cautious stance on legal intervention. Drawing on his background in the labor movement, he is taking a "two-track" approach by urging dialogue and negotiation.

On May 14, Minister Kim emphasized the importance of Samsung Electronics to the Korean economy through his Facebook and other channels, describing Samsung's semiconductor business as Korea's unrivaled growth engine and virtually the only core strategic asset. He further stated, "The moment we lose competitiveness, it is not about becoming second-best—survival itself becomes difficult, and we will fall into ruin." He warned, "If a strike were to occur in such circumstances, it would result in irreparable economic damage."

Minister Kim explained, "If factory operations come to a halt, daily production disruptions could reach up to 1 trillion won. Wafer processing takes more than five months, and if all wafers currently in process are damaged, losses could total up to 100 trillion won." He added, "This could also inflict significant harm on more than 1,700 partner companies. Moreover, it could lead to irreparable losses for the Korean economy, such as diminished trust in global supply chains, and jobs and income could disappear." Minister Kim concluded, "Given the seriousness of this issue and the unimaginable ripple effects, a strike must be prevented at all costs. As the Minister of Trade, Industry and Energy, I believe that if a strike does occur, emergency adjustment would be inevitable."

Younghoon Kim, Minister of Employment and Labor

As the minister responsible for the industrial sector, Kim has put himself at the forefront by suggesting the "emergency adjustment order," the government's ultimate means of intervention, due to concerns over the impact on the national economy. If the government invokes the emergency adjustment order, the union must suspend all industrial actions for 30 days.

Meanwhile, Kim Younghoon, Minister of Employment and Labor, has focused on "dialogue and negotiation" to avert disaster. As the official responsible for deciding whether to invoke the emergency adjustment order, he has demonstrated caution and a reluctance to intervene directly. However, leveraging his own experience as a "labor activist," he has called upon the union to make a decision. On the same day, Minister Kim wrote on his X (formerly Twitter) account, "<Democracy is about believing in the power of dialogue>," adding, "There is no company without workers, and no union is established to ruin a company." He accompanied his message with hashtags such as "#LiveTogether #NeedForDialogue," and said, "In my experience, there was nothing as difficult as negotiations during a strike. If the strike itself is not the goal, it must ultimately be resolved through negotiation."

Minister Kim is a former train operator at Korea Railroad Corporation (KORAIL) and previously served as chair of the Korean Confederation of Trade Unions (KCTU). He entered the labor movement in 2000 as the head of the Busan branch of the railway union and was elected chairman of the railway union in 2004. He was imprisoned in connection with the March 1, 2006 nationwide railway strike. He later served as the first chairman of the Korea Transport Workers' Union and as chairman of the KCTU. From 2010 to 2012, he led the KCTU for over two years, advocating for improved labor conditions and engaging in a hunger strike that lasted more than 20 days.

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