On 4 July 2019, the EU formally requested the Panel of Experts to be convened under Article 13.15 of the EU-Korea Free Trade Agreement (FTA). The gist of the dispute revolved around Korea’s compliance with its labour rights obligations under the Trade and Sustainable Development (TSD) Chapter of the FTA. The Panel of Experts gave its decision on 20 January 2021, making several recommendations for Korea to amend its domestic legislation. As a result of the EU-Korea labour dispute, Korea ratified three International Labour Organisation (ILO) Conventions and made amendments to its Trade Union and Labour Relations Adjustment Act (TULRAA). While the dispute has yielded some successful results for the EU, this article examines shortcomings of the EU’s approach to promoting labour rights in its relations with Korea, and remaining challenges as regards Korea’s obligations under the TSD Chapter.