Korean Labour and Employment Law Update

Statutes & Regulations

1. Minimum Wage Set at KRW 10,320 per Hour for 2026

The Minimum Wage Council under the Ministry of Employment and Labour (MOEL) has set the minimum wage for 2026 at KRW 10,320 per hour.

Based on the standard monthly calculation of 209 working hours, the monthly equivalent is KRW 2,156,880.

2. Proposed Amendment to Shift Employment Insurance Eligibility from Hours-Based to Income-Based

The MOEL has announced a draft amendment to the Employment Insurance Act that would replace the current working-hours-based eligibility standard for unemployment benefits with an income-based standard.

Under the current law, if an employee works fewer than 15 hours per week on average (over four weeks), the employment period does not count towards eligibility for unemployment-insurance benefits.

Under the proposed amendment, employees would be eligible regardless of working hours, provided their wages exceed a threshold to be determined by regulation.

This change aims to address long-standing concerns that certain workers have remained uninsured due to the hours-based standard, despite otherwise meeting the legal criteria for coverage. By adopting an income-based system and utilising national tax income data to identify uninsured workers, the amendment seeks to reduce coverage gaps and strengthen worker protections.

The amendment is currently pending before the National Assembly. We will provide further updates as the legislative process progresses.

3. Ongoing Debate on Raising the Minimum Mandatory Retirement Age

Although the government has expressed a clear intention to raise the minimum mandatory retirement age from 60 to 65, no law has yet been enacted.

An increase is considered highly likely, but several competing bills are under discussion in the National Assembly — including proposals for a phased increase over several years — and none has yet achieved a clear majority.

We will continue to monitor developments and provide updates as the details of this potential reform become clearer.

Case Law

Supreme Court Rules Disciplinary Action Void for Excluding Minority Union Representation

The Supreme Court has held that disciplinary action against a member of a minority union (a union representing a minority of employees) was void, as the disciplinary-action committee did not include any member of that minority union.

Korean law allows multiple unions to represent employees within a single organisation. Employers are entitled to bargain through a single channel unless they choose to negotiate separately with each union. Where one union represents a majority of employees, it becomes the default bargaining representative for all unions. In the absence of a majority union, a legally prescribed process determines unified bargaining representatives.

Under the company’s collective bargaining agreement (CBA) in this case, disciplinary proceedings against a union member required a disciplinary-action committee composed of an equal number of management and labour representatives, with the latter to be selected by the unified bargaining representatives — here, the majority union.

In a disciplinary case involving a member of a minority union, the majority union appointed only its own members as labour representatives on the committee. The Supreme Court found that appointing only majority-union members, without any representation from the disciplined employee’s minority union, constituted unjust discrimination against the minority union and breached the duty of fair representation, absent special circumstances.

Accordingly, the disciplinary action was deemed null and void due to this procedural defect.

In future disciplinary proceedings involving minority-union members, employers must ensure that labour representatives on the disciplinary-action committee include at least one representative from the minority union to which the employee belongs.

By Yulchon, Korea, a Transatlantic Law International Affiliated Firm.

For further information or for any assistance please contact korea@transatlanticlaw.com

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