Government Initiates Mediation on Labor Rights Violation by Nitto Denko
First Full-Scale Review of OECD Guidelines Dispute After 2022 Factory Fire and Layoffs
The government has decided to initiate a mediation process regarding a labor rights violation complaint filed against the Japanese company Nitto Denko. This decision is noteworthy as it marks the first time that the labor dispute surrounding the factory closure and layoffs following the 2022 fire at the Korea Optical High Tech plant in Gumi, North Gyeongsang Province, will be addressed in earnest according to international standards.
On June 24, the Ministry of Trade, Industry and Energy convened the second 2025 NCP (National Contact Point) Committee meeting, conducted the first assessment of the OECD Guidelines for Multinational Enterprises violation complaint submitted by the Metal Workers' Union and the Korean Confederation of Trade Unions, and resolved to begin the mediation process.
This case arose when workers laid off due to the closure of Korea Optical High Tech demanded employment succession at a Pyeongtaek-based affiliate within the same group (Korea Nitto Optical). Since 2023, some of the dismissed workers have been staging high-altitude protests, and labor organizations have continued to claim that Nitto Denko violated international corporate responsibility principles.
In its decision, the Korean NCP determined that mediation was necessary to facilitate dialogue between Nitto Denko and the complainants. However, it excluded domestic companies with business ties to Korea Optical from the mediation process, judging that there would be little practical benefit.
This mediation represents the initial step in seeking dispute resolution under the OECD Guidelines' principles of 'protection of labor rights and responsible business conduct.' After the mediation committee is formed, both parties will be encouraged to engage in dialogue voluntarily. If an agreement is reached, the government plans to announce the outcome through a statement and close the case.
An official from the Ministry of Trade, Industry and Energy stated, "We hope that this mediation process will serve as an opportunity for the parties to develop a solution that aligns with international standards through constructive dialogue."
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