The Democratic Party of Korea has announced plans to process amendments to Article 2 and Article 3 of the labor law known as the "yellow envelope law" during the August extraordinary session of the National Assembly, while the economic sector is continually visiting the National Assembly, pleading for a delay in the bill's passage. The economic sector has requested that the bill be delayed by only "1 year," arguing that if the yellow envelope law passes as it is, the industrial field may face great chaos.
James Kim, chairman of the American Chamber of Commerce in Korea (AMCHAM), met with Kim Byeong-ki, floor leader of the Democratic Party of Korea, at the National Assembly on the morning of the 19th to express concerns about the yellow envelope law. Chairman James Kim noted, "I am concerned that the passage of the yellow envelope law in the National Assembly may negatively impact Korea's status as an Asian regional hub," and requested that the National Assembly allow sufficient time to review industry opinions and concerns as it deliberates the law.
AMCHAM also issued a statement on July 25, stating, "Implementing a bill that limits the right to claim damages for illegal collective actions could lead to unintended consequences, such as promoting collective actions that hinder industrial activities," and pointed out that it could reverse the need for a stable and predictable business environment necessary for the success of domestic and foreign corporations and long-term investment attraction, ultimately diminishing Korea's appeal as an investment destination. Following this, Chairman James Kim personally approached Floor Leader Kim.
The six major economic organizations, including the Korea Enterprises Federation, the Korea Chamber of Commerce and Industry, the Federation of Korean Industries, the Korea International Trade Association, the Korea Federation of Small and Medium Enterprises, and the Federation of Middle Market Enterprises of Korea (FOMEK), held a "Rally to Urge Amendments to the Labor Law" on the steps in front of the main building of the National Assembly that day. Over 200 employees from the six major economic organizations and industry-specific economic organizations attended.
Prior to this, on the 18th, the six major economic organizations held a press conference at the National Assembly and urged for amendments to the labor law. Son Kyung-sik, chairman of KEF, who held the microphone, pleaded, "Amending the labor law could cause tremendous chaos in labor-management relations," and requested that the economic sector's alternatives be accepted for the sake of at least minimal stability and balance in labor-management relations.
The yellow envelope law expands the scope of employers to include those who are not parties to an employment contract but are in a position to control or determine working conditions concretely. It stipulates the obligation for the primary contractor to negotiate with labor and limits corporations' claims for damages due to strikes. The Democratic Party of Korea plans to process the yellow envelope law during the plenary session on the 23rd. While the People Power Party has stated its intention to block it through a filibuster, given the current seating structure, the ruling party can proceed with the passage.
As the passage of the yellow envelope law in the National Assembly draws near, the economic sector is continually visiting the National Assembly, pleading for a delay in the bill's passage. The six major economic organizations are demanding that the scope of employers remain as it is under the current law, and that "management decisions" be excluded from the subject of labor disputes. They argue that if management decisions become subject to collective actions, it could complicate corporations' overseas investments. They also request a grace period of at least 1 year should the law be amended.
However, the Democratic Party of Korea is poised to push through the passage of the yellow envelope law. After the meeting between Floor Leader Kim and Chairman James Kim, lawmaker Heo Young-wook stated to reporters, "(The yellow envelope law) cannot be modified," adding, "It will be processed according to the procedure as it is currently drafted."