Collective Bargaining in Korea

Parties, Employer Obligations, and the Expanded Scope 

Who Are the Parties to Collective Bargaining?

The parties to collective bargaining are those who negotiate in their own name and assume the rights and obligations arising under the resulting collective agreement. 

On the labor side, the party to collective bargaining must be a duly established trade union that satisfies the statutory requirements for union formation. In workplaces with multiple unions, the bargaining representative union (교섭대표노조) designated through the single bargaining channel procedure (교섭창구단일화절차) becomes the party to collective bargaining.

An Expanded Concept of “Employer” - Who Must Engage in Bargaining 

On the employer side, the party to collective bargaining is generally the employer who has entered into employment contracts with the union members. However, under the amended Trade Union Act, effective from March 10, 2026, a person or entity may also be regarded as an employer, even without a direct employment relationship, if it is in a position to effectively and specifically control or determine the working conditions of the employees concerned.

Accordingly, a principal company that outsources part of its business operations to a subcontractor may be required to engage in collective bargaining with the subcontractor’s trade union with respect to working conditions over which the principal company exercises such control or decision-making authority.

For further details, please refer to here.

Who Actually Sits at the Table?

Bargaining Representatives and Delegation of Authority

On the labor side, the collective bargaining representatives include the union president, who serves as the legal representative of the union, as well as bargaining committee members appointed in accordance with the union’s bylaws. On the employer side, depending on the organization of the business, representatives may include the business owner, a person responsible for the management of a business or a person who acts on behalf of a business owner.

Parties to collective bargaining may delegate their bargaining authority to a third party in order to enhance bargaining power or secure expertise. There are no legal restrictions regarding who may act as a delegate or how many delegates may be appointed. However, the delegate may exercise authority only within the scope of the mandate granted and the notice of the delegation must be provided to the party when such delegation is made.

What Can Be Bargained?

 Mandatory vs. Permissive Bargaining Subjects

The scope of collective bargaining is classified into mandatory bargaining subjects (의무적 교섭사항) and permissive bargaining subjects (임의적 교섭사항).

Mandatory bargaining subjects are matters for which the employer is legally required to engage in bargaining upon the union’s request. A refusal or neglect to bargain without just cause constitutes an unfair labor practice. Mandatory bargaining subjects include terms and conditions of employment, such as wages, working hours, holidays and leave, industrial accident compensation, occupational health and safety, as well as matters concerning the grounds and procedures for dismissal.

Permissive bargaining subjects are matters for which the employer has no legal obligation to bargain, but which may be incorporated into a collective agreement through voluntary bargaining. Refusal or failure to bargain over permissive subjects does not constitute an unfair labor practice. Examples of permissive bargaining subjects include matters related to union activities, union dues check-off arrangements, union time-off hours, and the number of time-off workers. 

Are Managerial Decisions Included?

The recent amendment to the Trade Union Act, effective March 10, 2026, has expanded the scope of matters subject to collective bargaining. This amendment expressly clarifies that managerial decisions affecting working conditions are included within the scope of collective bargaining. 

For further details, please refer here.  

How Is Bargaining Coordinated with Multiple Unions?

The Single Bargaining Channel System (교섭창구단일화절차)

In workplaces where multiple trade unions exist, the bargaining representative union (교섭대표노조) must be selected through the single bargaining channel procedure.

There are two exceptions to this rule. First, the employer may agree to engage in separate bargaining with each union without going through the single bargaining channel procedure. Second, if there are significant differences in working conditions or employment types, the Labor Relations Commission may approve the separation of a bargaining unit (교섭단위분리) upon an application by the union seeking such separation. Except in such cases, the bargaining representative union must be determined through the single bargaining channel procedure. 

The bargaining representative union designated through this process is vested with the authority to bargain and to conclude or amend a collective agreement on behalf of all unions and their members that have participated in the single bargaining channel procedure.

Protection Against Discrimination 

The Duty of Fair Representation (공정대표의무)

The bargaining representative union and the employer have a duty of fair representation, requiring them to represent all unions and their members that participate in the single bargaining channel procedure fairly and without unreasonable discrimination. If a specific union is subject to discrimination in the process of concluding or implementing a collective bargaining agreement, it may file a complaint with the Labor Relations Commission for a violation of the duty of fair representation.

For assistance with collective bargaining obligations and compliance under Korean labor law, please contact us.