Major business lobby groups in South Korea on Tuesday criticized a recent Supreme Court ruling that imposes limitations on labor unions’ liability to compensate companies for damages resulting from their illegal labor disputes.

During a press conference in Seoul, business lobby groups expressed concerns and argued that “the recent Supreme Court ruling establishes new case law that protects union members involved in illegal activities. It relies on an extremely exceptional Supreme Court precedent that individually determines the degree of liability in cases of illegal labor disputes.”

Representatives from six business lobby organizations attended the press conference, including the Korea Enterprises Federation, the Korea Chamber of Commerce and Industry, the Federation of Korean Industries, the Korea International Trade Association, and the Federation of Middle Market Enterprises of Korea.

The Supreme Court ruling, issued last week, specifies that compensation claims made by companies for damages caused by individual union members participating in illegal strikes should be assessed on an individual basis, considering the level of illegality.

This decision is perceived by the business community as a limitation on companies’ ability to seek appropriate damages for union misconduct.

The business lobby groups argued that “civil law is founded on the principle that all individuals involved in a joint wrongful act are fully liable for the resulting damages. The Supreme Court’s ruling contradicts this fundamental principle of civil law and undermines the very essence of the rule of law.”

They further expressed concerns that this ruling could effectively obstruct employers’ claims for damages, leading to a state of lawlessness in industrial sites.

By Chung Seung-hwan and Minu Kim

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