Operation of 'Labor Director System' at Seongdong-gu Public Enterprise ... First in Seoul Autonomous Districts

Enactment of the Ordinance on the Operation of the Labor Director System in Seongdong-gu
Guaranteeing Workers' Participation in Decision-Making and Enhancing Accountability and Public Interest in Public Institutions under Seongdong-gu

Seongdong-gu (Mayor Jeong Wono) announced that it has become the first autonomous district in Seoul to enact the "Ordinance on the Operation of the Labor Director System in Seongdong-gu, Seoul" to guarantee workers' participation in management at public institutions under its jurisdiction.

The labor director system is an official system that guarantees workers' participation in management, where worker representatives participate in the board of directors to check decision-making centered on corporate managers. Labor directors, as stipulated by laws and articles of incorporation, have the right to speak and vote on major matters such as business plans, budgets, amendments to articles of incorporation, and disposal of assets.

The labor director system for public institutions under local governments was first introduced in 2016 when Seoul City enacted the "Ordinance on the Operation of the Labor Director System in Seoul." Since then, the central government (Ministry of Economy and Finance) amended the Act on the Management of Public Institutions in 2022 to introduce the labor director system, and it is gradually spreading.

The ordinance on the operation of the labor director system in Seongdong-gu was approved as originally proposed at the 3rd plenary session of the 283rd extraordinary meeting of the Seongdong-gu Council on February 21, 2025, and the district will promulgate the ordinance on March 13. Seongdong-gu is the first among Seoul's autonomous districts to enact an ordinance to introduce the labor director system.

The ordinance stipulates ▲ the definition of labor directors ▲ target institutions for labor directors ▲ appointment of labor directors ▲ qualifications of labor directors ▲ term of labor directors ▲ powers and responsibilities of labor directors.

The district expects that with the introduction of the labor director system, workers' participation in management will be guaranteed, internal monitoring and checks will be carried out, and the public interest, transparency, and accountability of management will be enhanced. In addition, based on workers' knowledge and experience, it will be possible to reflect the voices from the field, and smooth communication will be enabled, which is expected to have a positive effect on resolving labor-management conflicts.

Jeong Wono, Mayor of Seongdong-gu, said, "The enactment of the ordinance on the operation of the labor director system in Seongdong-gu has established an official foundation to reflect workers' voices in the decision-making process of public institutions," and added, "We will continue to provide policy support and assistance to enhance management responsibility and transparency through coexistence and cooperation between labor and management."