The Democratic Party of Korea leadership, which passed the Yellow Envelope Act and a stronger commercial law amendment, met with major economic organizations. This is seen as an effort to appease corporations after dissatisfaction over the successive corporate tightening legislation grew.
Jeong Cheong-rae, the leader of the Democratic Party of Korea, visited the Korea Federation of Micro Enterprise (KFME) in Yeongdeungpo-gu, Seoul, on the 3rd, where he met with Song Chi-young, the chairman of the KFME, and listened to the difficulties faced by micro businesses. This was the first time Jeong met with the economic sector since taking office a little over a month ago.
Before the meeting, Jeong made a statement, saying, "While large corporations have a large share in our economy, when it comes to employment or the number of corporations, small and medium-sized enterprises and micro businesses account for an absolute majority," and noted, "It is small and medium-sized enterprises and micro businesses that support our lives and our economy."
He also expressed a willingness to proactively review the policies proposed by the Korea Federation of Micro Enterprise (KFME). Chairman Song requested a postponement of the expansion of the Labor Standards Act to business sites with fewer than five employees. He explained, "If paid annual leave and overtime pay are applied to establishments with fewer than five employees, an additional expense of 42 million won per year would arise," adding, "That amounts to over 10 million won per employee."
He lamented, "In a structure where the minimum wage only keeps increasing every year, this expense can only grow exponentially. If business is not good but labor costs keep rising, which micro business can endure that?"
In response, Jeong stated, "(Excluding the application of the Labor Standards Act to business sites with fewer than five employees) has received a constitutional court ruling twice," and said, "Our policy committee decided to conduct a legal review first." Additionally, the Democratic Party decided to review strengthening support for businesses that have closed.
In the afternoon, Kim Byeong-ki, the floor leader of the Democratic Party, met with the six major economic groups (The Federation of Korean Industries, Korea Enterprises Federation, Korea Chamber of Commerce and Industry, Korea International Trade Association, Korea Federation of Small and Medium Enterprises, Federation of Middle Market Enterprises of Korea (FOMEK)) for discussions. This followed his attendance at the launch ceremony of the task force aimed at rationalizing civil liabilities in economic punishment on the 2nd.
Kim said, "The Yellow Envelope Act and the second commercial law amendment are laws that aim to enhance transparency in corporate management and promote labor-management coexistence," adding, "We will make thorough preparations for follow-up measures to soothe corporate concerns and create a stable management environment before the implementation of the law." He mentioned the elimination of the crime of breach of trust being pursued by the Democratic Party, stating, "If we strike a balance by rationalizing criminal and civil responsibilities, we can guarantee free activity for corporations."
Chairman Son remarked, "While I have presented multiple reviews and alternatives regarding the Yellow Envelope Act, I am very regretful that it passed without sufficient supplementary measures," urging, "Please prepare follow-up measures with greater care to minimize side effects." He added, "In our country, corporate executives prosecuted for breach of trust in the last 10 years number 31 times that of Japan," expressing hope for the swift promotion of improvements to the breach of trust statute.