U.S.-based global corporations investing in Korea met with the government and voiced concerns about management uncertainty caused by frequent changes in laws and systems. They cited the weakening of protections for management rights following the implementation of the Yellow Envelope Act (amendments to Articles 2 and 3 of the Trade Union Act) as a key issue.
The American Chamber of Commerce in Korea (AMCHAM) held a high-level meeting with the Ministry of Employment and Labor at the Conrad Seoul in Yeouido on the morning of the 19th. Corporate executives at the event met with Vice Minister Kwon Chang-jun of the Ministry of Employment and Labor and exchanged views on the new government's employment and labor policy direction and on-site challenges.
James Kim, AMCHAM chairman and CEO, said, "For Korea to establish itself as a key hub in the Asia-Pacific region, improvements across the overall business environment are essential," adding, "At the center of that is labor flexibility."
Chairman James Kim said, "Regarding the recently passed Yellow Envelope Act, it is most important that the task force (TF) with the Ministry of Employment and Labor faithfully reflect industry opinions," adding, "To support this, we are currently conducting a survey of member companies and will share specific policy recommendations soon."
Businesspeople expressed concerns about changes to domestic laws and systems, including the Yellow Envelope Act, and conveyed the view that institutional supplements are needed. They cited limits in responding to prolonged illegal strikes and legal restrictions on deploying substitute workers during strikes, while emphasizing the need to shift the Serious Accidents Punishment Act toward prevention and to strengthen dispute mediation and arbitration systems between labor and management.
The Vice Minister said, "There are many issues that require close cooperation between U.S. and Korean corporations and between labor and management to secure global competitiveness and achieve sustainable growth," adding, "The government will also give deeper consideration to the views of foreign corporations and pursue policies that support genuine growth for both corporations and workers."
Meanwhile, the event was part of AMCHAM's "high-level meeting series" launched to discuss key issues such as the regulatory environment. The high-level dialogue with the Ministry of Employment and Labor was the second, following a meeting with Minister Kim Young-hoon in Aug.