This paper traces the historical trajectory of trauma discourse in South Korean society from the 1970s to the present and analyzes how the medicalization of trauma impedes genuine peace restoration. By combining Veena Das's concept of 'social suffering' with critical peace studies, this research examines how trauma terminology transforms structural violence and political responsibility into individual psychological problems. Using the Ssangyong Motors layoff case as a central example, this study demonstrates how trauma discourse can avoid addressing root causes while providing only superficial understanding, thereby maintaining structural inequalities. The paper argues that true peace restoration is possible not through individual psychological treatment but through structural change and political participation. It reveals that a fundamental reconsideration of approaches to trauma resolution is essential for peace restoration in Korean society. This research illuminates how trauma fails to be adequately addressed when understood merely as an individual psychological condition, and conversely, how a structural approach to trauma resolution becomes a prerequisite for sustainable peace restoration.