Kim Ji-hyung, chairman of the Economic and Social Council, announced that he is considering addressing the 'N% performance bonus' issue, which has become a point of contention between Samsung Electronics and its labor union, as a topic for social dialogue. He also indicated that the sharing of excess profits resulting from advancements in artificial intelligence (AI) could be discussed in future council meetings.
During a press conference held on August 11 in Jongno, Seoul, Kim stated regarding the N% performance bonus, "Once internal reviews are completed, I believe it would be prudent to present this issue for social dialogue after consultations with labor, management, and the government."
The N% performance bonus refers to a system where a certain percentage of a company's operating profit is allocated for performance bonuses. There has been ongoing conflict between Samsung Electronics and its labor union regarding whether this issue falls under collective bargaining and labor disputes.
Kim assessed that resolving the conflict solely through legal judgments would be challenging. He remarked, "Determining whether this is a subject of collective bargaining will not provide an immediate solution to the issue. Ultimately, a court's decision is necessary, but that process can take a considerable amount of time."
He added, "It is a realistic concern whether the employer side can refuse the union's bargaining demands while risking penalties for unfair labor practices. The council has been gathering broad opinions from experts to consider whether to include this in the social dialogue agenda."
However, the agenda has not yet been finalized. The council plans to complete its internal review and then consult with labor, management, and the government to determine the specific discussion methods and scope.
The issue of sharing excess profits from the AI era has also been mentioned as a long-term topic for social dialogue. The Ministry of Employment and Labor held a discussion forum in July to outline key questions regarding the concept and distribution of excess profits.
Kim distinguished between the sharing of excess profits from AI and the N% performance bonus, stating, "This is not merely about redistributing wealth or providing welfare in a patronizing manner. We must approach it from the perspective of managing potential social instability arising from AI advancements and ensuring societal acceptance of technology."
He noted that further discussions are needed regarding the scope and methods of sharing excess profits. Various proposals, including reduced working hours, AI taxes, robot taxes, basic income, and data dividends, have been suggested, but there is currently no unified opinion.
Kim acknowledged, "This is a difficult and complex topic, but there is ample room for the council to lead discussions on social dialogue at the appropriate time. If it becomes an agenda item, it is essential to involve not only labor, management, and the government but also citizens in the process."
Regarding the application of exceptions to the 52-hour workweek for R&D personnel in advanced industries like the Honam Semiconductor Mega Cluster, he expressed a willingness to observe legislative discussions in the National Assembly and dialogues between labor and management first.
Kim stated, "There is likely a national consensus on the need to enhance the competitiveness of advanced industries such as semiconductors, physical AI, and AI data centers, but we must also explore ways to alleviate labor concerns regarding special labor provisions."
He added, "As the Mega Cluster Special Act is expected to be addressed in the National Assembly and dialogues between labor and management have begun, it is premature for the council to take a separate stance. However, if the need arises for the council's role through presidential consultations or labor-management-government discussions, we will actively promote social dialogue."
* This article has been translated by AI.
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