This study examines how labour standards are incorporated into Korea’s free trade agreements (FTAs), focusing on the Korea-EU FTA and its 2021 Panel of Experts proceeding―the first formal case involving Korea's labour obligations in an FTA context. The Panel found partial non-compliance with Article 13.4(3), particularly in Korea’s insufficient protection of freedom of association and collective bargaining as defined by international labour standards. The case marked a pivotal moment in clarifying the interpretation of labour provisions in FTAs and demonstrated how trade partners can use institutional mechanisms to address labour concerns. Drawing on a legal analysis of the Panel’s reasoning and its implications, the study sheds light on how the Korea-EU labour dispute has set a precedent for future labour rights enforcement through trade mechanisms, and emphasizes the importance of enhancing the legal clarity and institutional preparedness surrounding labour obligations in future FTAs.