In April 2019, the Seoul Metropolitan Government (“SMG”) approved a report on establishment of an insurance agents’ labor union.  Although there have been previous attempts to establish labor unions for insurance agents, this is the very first time that a government authority has issued an official approval. 

Generally, the Korean government has been relatively cautious about approving the establishment of unions by “special-type employees,” whereas municipal and regional governments have been relatively more receptive to such applications.  For instance, the National Korean Life Financial Industry Union, which is an unapproved union consisting of insurance agents, filed an application to establish labor unions with the Ministry of Employment and Labor’s Daegu office (“MOEL”) in October 2018.  However, to date, the MOEL has not yet approved the application.  

Meanwhile, the SMG approved an application to establish a labor union in November 2018 filed by chauffeur service drivers, which was quickly followed by approvals from other local governments, such as the City of Ulsan, City of Busan, South Jeolla Province, South Gyeongsang Province, and the City of Gwangju.  Further, the SMG also approved a labor union establishment application in June 2019 for an express delivery workers’ labor union, along with the above-mentioned union of insurance agents in April.  

Significance:

The SMG’s recent decision may kickstart a nation-wide movement to establish and register other labor unions of insurance agents.  The Seoul Division of National Insurance Agent Labor Union (which is under the Korean Confederation of Trade Unions), which has not yet received approval from the MOEL, has filed an application to establish a labor union with the SMG in June 2019. 

Given that the Korean Supreme Court rendered decisions in 2018 that recognized employee status for homeschool teachers and broadcasting actors under the Trade Union and Labor Relations Act, and since local governments have recently approved reports to establish labor unions for special-type employees, it is likely that other applications for establishing insurance agents’ labor union may also be approved.