The ruling party has announced plans to process the amendment to the Commercial Code and the Yellow Envelope Law during the July extraordinary National Assembly session. There were concerns that the processing of the bill could be delayed due to criticisms that corporations must be relieved of their burdens ahead of U.S.-Korea tariff negotiations, but the Blue House's request for quick processing has shifted the internal flow of the party toward a 'race against time.'
With the increase in corporate tax, voices from the business community are expressing that the burden of corporate management is growing. The opposition party intends to utilize a filibuster to block the ruling party's bill processing.
Lee Un-joo, a senior member of the Democratic Party of Korea, stated at a Supreme Council meeting held at the National Assembly on the 30th, "The second amendment to the Commercial Code and the Yellow Envelope Law passed the committee on the 28th," and argued that "the second amendment to the Commercial Code should be called a pro-market legislation aimed at revitalizing and modernizing the capital market." She also noted that the Yellow Envelope Law is "a bill to restore the balance between labor and capital and to lay the foundation to reduce unfairness in the industrial field to enhance labor productivity," adding, "Because there is a six-month grace period, we will be able to coordinate sufficiently on-site."
The determination to process the second amendment to the Commercial Code and the Yellow Envelope Law by August 4, the end of the July extraordinary National Assembly session, has been reconfirmed. The amendment to the Commercial Code is pushing for a second amendment with stronger content one month after the first amendment was made earlier this month.
The first amendment to the Commercial Code applied the '3% rule' when electing audit committee members who are outside directors. The '3% rule' limits the voting rights of major shareholders and their families, and the business community has reacted strongly, stating that the risk of threats to corporate management has increased. This second amendment includes provisions mandating cumulative voting and expanding the separate election of audit committee members.
The amendment to Articles 2 and 3 of the Labor Union Law, known as the Yellow Envelope Law, expands the scope of employers to recognize primary contractors as employers of subcontractors. Additionally, the government and ruling party decided on the 29th to raise the highest corporate tax rate from 24% to 25% during a party-government council at the National Assembly.
The business community is calling the second amendment to the Commercial Code, the Yellow Envelope Law, and the increase in corporate tax the 'anti-corporate three laws' and is strongly opposing them. The Federation of Korean Industries, the Korea Chamber of Commerce and Industry, and other economic groups issued a statement on the 29th expressing their dismay at the swift movement of the amendments to the Commercial Code and the Labor Union Law through the National Assembly during a serious economic situation, and the European Chamber of Commerce, representing over 400 European companies in Korea, stated that "if the Yellow Envelope Law is enacted, we may withdraw from Korea."
The ruling party is aware of the business community's opposition. A senior ruling party lawmaker stated, "As we need the help of corporations ahead of U.S.-Korea tariff negotiations, it is true that it is burdensome for the party to try to legislate various bills that burden corporations at the same time." There are also movements within the ruling party to delay the processing of the Yellow Envelope Law until the August extraordinary National Assembly session.
However, the Blue House's strong will to process the second amendment to the Commercial Code and the Yellow Envelope Law has instead sped up the legislation. The Blue House is also using phrases like 'restoration to the original state' and 'normalization' regarding the corporate tax increase.
The opposition party has stated its position to prevent processing during the July extraordinary National Assembly session. The People Power Party held a senior meeting on this day and indicated that it would be unavoidable to obstruct the progress of the assembly via filibuster if the controversial bills, such as the amendments to the Commercial Code and the Yellow Envelope Law, are brought up. An official from the opposition party noted, "If the controversial bills pass the Legislation and Judiciary Committee on August 1, they are expected to be presented at the plenary session on August 4," and added, "We are preparing for the filibuster."