A three-way policy panel made up of business, labor and government, which last month agreed to revise the flexible work hours system by expanding its application period to six months, failed to approve the revision.
According to the Economic, Social and Labor Council, a presidential advisory body, Thursday's planned vote on the revision was called off after it failed to make quorum with three representatives of labor deciding not to participate.
President Moon Jae-in, who had initially planned to attend the meeting, also called off his attendance.
The three members representing young people, women and non-permanent workers said they were excluded from discussions on the revisions.
They expressed their opposition over concerns that the expanded flexible hours application period could infringe on the health rights of workers not affiliated with a union.
The council is set to attempt another vote on Monday after persuading the three members to attend.