South Korea’s government is reviewing applying a new corporate governance system requiring public institutions to include labor union representatives at their board of directors and reflect employees’ say in management decisions.
According to presidential planning and advisory committee and ruling Democratic Party on Wednesday, the government is mulling to include the so-called employee co-determination system in the new administration’s five-year national agenda plan.
Labor participation in managing board has been in practice in 19 European countries. Germany has laws making employees represent for almost half of the supervisory board. The scope of employee representation in Korean public institutions will be decided through legislative review.
The Seoul Metropolitan Government last year caused a controversy by passing a separate act on labor presentation in boards of public institutions.
By Cho Si-young and Kim Se-woong
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]