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Close examination of current labor disputes shows that labor courts are more effective in settling labor disputes than Labor Commissions. Nevertheless, under the current system, most labor disputes are resolved by judicial decisions in ordinary courts if there are disagreements between the parties concerned after a mediation process. These practices have caused a lot of ineffectiveness since it needs a long period of time and big amount money to reach a verdict in ordinary courts. Therefore, it is desirable to establish a labor court with the function of prompt mediation of current Labor Commissions for the prompt and efficient settlements of labor disputes. Mediation between labor and management is also possible in the labor court since disputes can also be settled through reconciliation, mediation and arbitration as well as trials. In other words, it is more appropriate to establish a labor court with a department exclusively responsible for reconciliation so that labor disputes can be resolved through reconciliation rather than by arbitration in order to avoid unnecessary conflicts.