The Korean National Contact Point (NCP) for the OECD Guidelines for Multinational Enterprises announced today, June 24, that it will commence mediation proceedings between Nitto Denko, the parent company of Korea Optical High Tech, and the Korean Confederation of Trade Unions (KCTU) and the Korean Metal Workers' Union (KMWU). This initial assessment comes eight months after the KCTU and KMWU submitted their complaint in October 2024 alleging that Korea Optical High Tech's mass layoffs violated the OECD Guidelines for Multinational Enterprises. Considering the Korean NCP's operating regulations requiring the initial assessment to be completed within 90 days, KTNC Watch cannot but express regret that the initial assessment was delayed despite the ongoing high-altitude protest by the workers.
Nevertheless, given the extraordinary 534-day duration of the high-altitude protest—which workers have sustained in opposition to the mass layoffs by Korea Optical High Tech, a subsidiary of Nitto Denko—the Korean NCP's decision to initiate this mediation procedure must absolutely yield substantive results. Regrettably, despite 24 years since its establishment, the Korean NCP has achieved little meaningful outcome regarding complaints received alleging violations of the OECD Guidelines for Multinational Enterprises. We clearly remember the case involving Asahi Glass and Hydis, where the Korean NCP initiated its first-ever mediation procedure in 2016 for a socially high-profile foreign investment company layoff case. However, the Korean NCP failed to properly address the breakdown caused by the company's lack of understanding of the NCP process, resulting in the mediation procedure concluding without any outcome.
The Korean NCP must not merely facilitate dialogue between Nitto Denko and the labor union but actively pursue the mediation process. It must strive to clarify the issues and reconcile the parties' positions while clearly stating that the OECD Guidelines for Multinational Enterprises form the fundamental basis of the mediation process. The OECD Guidelines for Multinational Enterprises are the very reason for the Korean NCP's existence. Unless it operates based on this raison d'être, there is no justification for the Korean NCP's existence. If no agreement is reached with Nitto Denko during the mediation process, the Korean NCP must clearly state its position in the final statement regarding whether Nitto Denko and Korea Optical High-Tech complied with the OECD Guidelines for Multinational Enterprises.
Nitto Denko should feel ashamed that a complaint was filed alleging a violation of the OECD Guidelines by a Japanese company operating in Korea, both OECD member states, leading to the initiation of the conciliation procedure. While effectively directing the management of Korea Optical High Tech, Nitto Denko has evaded responsibility for suppressing the labor union under the pretext of a fire and for the prolonged high-altitude protest following layoffs. We demand that Nitto Denko, apart from participating in the Korean NCP's conciliation process, immediately take measures to halt the workers' high-altitude protest.
Following the initial evaluation that took a full eight months, no one can guarantee when the mediation process will conclude. For the Korean NCP's mediation to yield substantive results, Nitto Denko's sincere and active participation is essential, and the Korean NCP's role is crucial to this end. We also note the role of the government commissioners, who constitute half of the Korean NCP's members. In practice, the Korea Commercial Arbitration Board (KCAB), a private institution, has led the mediation process under the direction of private commissioners—who at least possess some expertise—citing a lack of expertise among others. However, this approach has yielded little meaningful progress. We will closely monitor the stance and role of the government commissioners participating in the Korean NCP, who are officials from the Ministry of Trade, Industry and Energy (MOTIE), the Ministry of Employment and Labor (MOEL), and the Ministry of Environment (MOE) under the Lee Jae-myung administration, throughout the mediation process and the final statement.
Recently, the Ministry of Trade, Industry and Energy communicated its decision to partially accept the National Human Rights Commission of Korea's recommendations for improving the Korean NCP system. This decision appears based on confidence that the Korean NCP is functioning well, without needing to fully accept all the Commission's recommendations. If they are so confident, we hope they will prove it in this mediation process, closely watched by numerous workers and citizens in both Korea and Japan. If they fail to do so, the Korean NCP will be perceived by citizens as an entity in urgent need of reform.
KTNC Watch earnestly hopes, alongside many citizens, that Park Jeong-hye, a member of the Korean Optical High Tech Branch of the Korean Metal Workers' Union who has been continuing her struggle, will end her high-altitude protest and spend this summer on the ground. Despite many concerns, we hope the Korean NCP's decision to initiate this mediation procedure will be the starting point for resolving the situation. We will continue to monitor the Korean NCP's activities, including its mediation process.