Latest news with #YellowEnvelopeLaw
Korea Herald
03-08-2025
- Politics
- Korea Herald
Filibuster anticipated as DP floats 'Yellow Envelope Law'
Ruling party aims to table pro-labor bill in the plenary session Monday The ruling Democratic Party of Korea on Sunday reaffirmed its intention to unilaterally push forward a pro-labor bill — dubbed the 'Yellow Envelope Law' — through a plenary session scheduled for Monday, with the People Power Party vowing to launch a filibuster to block its passage. Labeling the bill — which would revise Articles 2 and 3 of the Labor Union Act — 'corporate-killing legislation,' the People Power Party has announced plans to delay its passage for 24 hours through an unlimited debate during Monday's plenary session. The opposition party also said that if they cannot negotiate as a minority party, they will filibuster. If a filibuster does take place, it will be the first one to take place in a plenary session in over a year. However, even if the party attempts to block the passage of the bill through a filibuster, the Democratic Party, which holds a majority of seats in the National Assembly, can end the debate 24 hours after it starts and begin voting on the bill. A senior People Power Party official, as quoted by Yonhap News Agency, acknowledged the limited impact of the tactics but stressed its importance in raising public awareness. 'We know filibusters may not change outcomes, but as a minority party, we must exhaust every measure to expose the problems presented by this bill,' the official was quoted. However, Rep. Huh Young of the Democratic Party said during a press briefing on Sunday that the party would make it a priority to pass the controversial bill. 'As members of the floor leadership, we are determined to see this bill passed during the plenary session,' said Huh. 'This legislation is aimed at breaking the vicious cycle of conflict and evasion of responsibility in labor relations by clearly defining the actual employer in subcontracting structures.' One key feature of this bill is that it broadens the legal definition of the term 'employer.' Under the amendments, any entity that 'substantially and specifically controls and determines working conditions' would be considered an employer and not just those who employ workers directly. 'The bill will help clarify the responsibility structure between original contractors and subcontractors and lead to more realistic and orderly negotiations,' Huh added. 'It's expected to reduce conflict and pave the way for more constructive labor relations.' Another important feature of the bill is that it also expands on the definition of what constitutes a 'legitimate labor dispute.' While labor disputes are legally limited to disagreements on 'working conditions,' the proposed revision would broaden this to include 'business management decisions that affect working conditions," meaning unions could legally strike not only over layoffs but also over choices made by management such as investment plans. Adding that the Yellow Envelope Law 'reflects international standards,' Huh reiterated the importance of the bill in being passed. 'This bill reflects international standards, including ILO recommendations, EU trade requirements and precedents from South Korea's own Supreme Court,' Huh said. 'Ensuring labor rights is now recognized globally as the foundation of a stable and sustainable investment environment.' Other than the Yellow Envelope Law, the Democratic Party also announced that it will work to push forward three broadcasting reform bills — which aim to make public broadcasters more independent from political influence — as well as an amendment to the Commercial Act that expands the fiduciary duty of board members to protect the interests of minority shareholders.
Korea Herald
01-08-2025
- Business
- Korea Herald
Pro-labor, broadcast reform bills to be put to vote next week
Several contentious bills, including one pro-labor bill and three aimed at reducing government influence over public broadcasters, will be put to a vote at the National Assembly next week after a parliamentary standing committee approved them on Friday. The Assembly's Legislation and Judiciary Committee, led by the ruling Democratic Party of Korea, voted in favor of passing the three broadcasting bills and the pro-labor bill dubbed the 'Yellow Envelope Law' during a meeting. All four bills are sponsored by the ruling party and the liberal Lee Jae Myung administration. With 16 of the 18 committee members in attendance, all bills passed after 10 voted in favor, with six abstentions. Of the total 18 members, 10 are lawmakers of the ruling party, including the committee's chair, Rep. Lee Choon-suak of the Democratic Party. Seven are main opposition People Power Party lawmakers, while one is a member of the minor progressive Rebuilding Korea Party. Committee members belonging to the People Power Party vocally protested during Friday's vote. Democratic Party members, however, refused to hold a debate over the bills despite the main opposition's request. The bills will be put to a vote during a parliamentary plenary session scheduled for Monday. The People Power Party announced plans to launch a filibuster to delay the passage of the legislation. The 'Yellow Envelope Law' is a revision to the Trade Union and Labor Relations Adjustment Act that focuses on restricting companies from claiming damages against legitimate disputes involving labor unions. The nickname stems from the donations that the public sent to support SsangYong Motor workers in 2014, after they were laid off and faced court orders to compensate their employer for the damages made to company properties during a strike. South Korean business lobby groups, the American Chamber of Commerce in Korea and the European Chamber of Commerce have all voiced concerns that the passage of the bill could prompt foreign companies to withdraw from the Korean market. Meanwhile, the amendments to the Broadcasting Act, the Foundation for Broadcast Culture Act and the Korea Educational Broadcasting System Act aim to increase the number of board directors at public broadcasters KBS, MBC and EBS, respectively. The set of bills quintessentially seeks to reform the governance structure of the public broadcasters by reducing the government and the National Assembly's power to name the board directors. The opposition claims the restructuring aims to reinforce the influence of labor unions. All four bills were previously vetoed by former President Yoon Suk Yeol when he was in office, after the Assembly at the time, led by then-main opposition Democratic Party, passed them.
UPI
31-07-2025
- Business
- UPI
Global corporations in Korea warn against pro-labor bill
The American Chamber of Commerce in Korea, which represents hundreds of companies mostly from the United States, opposes the introduction of a controversial pro-labor bill in South Korea. Photo courtesy of the American Chamber of Commerce in Korea SEOUL, July 31 (UPI) -- Organizations that represent global corporations in South Korea have raised concerns about the so-called "Yellow Envelope Law," a pro-labor bill that the ruling Democratic Party is seeking to pass with its parliamentary majority. The bill is intended to protect subcontracted workers, limit corporate lawsuits seeking damages from strikes and expand legal responsibility for company executives who avoid collective bargaining. "A flexible labor environment is essential to strengthening Korea's competitiveness as a business hub in the Asia-Pacific region," American Chamber of Commerce in Korea Chairman and CEO James Kim said in a statement Wednesday. "If enacted in its current form, this legislation could influence future investment decisions by American companies considering Korea," he said.. Regulatory unpredictability remains one of the top challenges for foreign-invested companies in Korea. This legislation may add to that uncertainty and, in turn, undermine Korea's global competitiveness." The warning came after the National Assembly's Environment and Labor Committee passed the Yellow Envelope Law on Monday, which is waiting for a decision in the Democratic Party-dominated plenary session. The bill, which was twice vetoed by former President Yoon Suk-yeol, is highly likely to move forward under incumbent President Lee Jae-myung, who has overtly supported its introduction. Should the law be enacted, the European Chamber of Commerce in Korea indicated that it could prompt foreign companies to leave the country. "Given the numerous criminal sanctions imposed on employers under the Trade Union Act, this vague and expanded definition may treat business operators as potential criminals and significantly discourage business activity," the chamber commented in a statement. "The impact is particularly severe for foreign-invested companies, which are highly sensitive to legal risks stemming from labor regulations," it added. The two chambers represent hundreds of corporate members from the United States and Europe, respectively.
Korea Herald
30-07-2025
- Business
- Korea Herald
'Yellow Envelope Law' will repel investment, foreign biz groups warn
US chamber raises 'deep concern,' says legislation may deter future American investment A controversial pro-labor union bill advancing through Korea's National Assembly is drawing a rare, unified backlash from both foreign business chambers and local industry groups, who warn it could erode legal predictability and diminish the country's investment competitiveness. The proposed legislation, commonly referred to as the 'Yellow Envelope Law,' would amend the Trade Union and Labor Relations Adjustment Act. If passed, the bill would expand the definition of 'employer' to include main contractors in subcontracting chains, giving bargaining power to workers in indirect or outsourced jobs. It would also limit companies from demanding compensation from unions for strike-related losses and hold executives liable if they refuse to negotiate with unions. The American Chamber of Commerce in Korea, the country's largest foreign business chamber with over 800 member companies, on Wednesday expressed 'deep concern' after the bill passed the parliamentary Environment and Labor Committee last week. 'If enacted in its current form, this legislation could influence future investment decisions by American companies considering Korea,' said AmCham Chairman and CEO James Kim in a statement. 'A flexible labor environment is essential to strengthening Korea's competitiveness as a business hub in the Asia-Pacific region,' he said, adding that the bill had progressed 'without sufficient input from industrial stakeholders.' Backed by President Lee Jae Myung's resolve to protect vulnerable workers, the ruling Democratic Party of Korea has been pushing to pass the bill in a move that conservative People Power Party lawmakers have denounced as 'anti-business." The European Chamber of Commerce in Korea echoed those concerns a day earlier, warning that vague and expanded liability could expose companies to unclear criminal risk. 'If a company faces legal exposure simply for failing to respond to unclear bargaining requests, it could result in withdrawal from the Korean market,' the chamber said in a statement. Pushing back against the criticism from the ECCK, Korea's Labor Minister Kim Young-hoon argued on Tuesday that the bill aims to align Korean labor regulations with global standards. Speaking at a government briefing, Kim cited Europe's supply chain due diligence laws as an example of international norms demanding 'responsible corporate behavior' and shared liability between parent and subcontractor firms. 'Meeting international standards is increasingly essential not just for labor rights, but also for global trade and competitiveness,' Kim said. He added that the OECD has repeatedly pointed to Korea's dual labor market structure, marked by a stark divide between large corporations and small- and medium-sized enterprises, as a key factor limiting long-term growth, calling the bill a necessary step for sustainable development. First proposed in 2015, the bill has long faced resistance from conservative parties and business lobbies. Now one of Korea's most polarizing bills, its fate could reshape labor governance and signal how the country balances worker rights with business interests. A renewed political showdown appears imminent as the revised bill is scheduled for a potential floor vote on Aug. 4. Korean industry groups are alarmed by the bill's potential fallout for subcontracting-heavy sectors such as automotive, shipbuilding and construction. On Wednesday, major Korean business associations, including the Korea Enterprises Federation, Korea Automobile & Mobility Association, Korea Offshore & Shipbuilding Association, and Construction Association of Korea, issued a joint statement urging lawmakers to halt the legislation. KEF Vice Chairman Lee Dong-geun warned that the amendment would destabilize Korea's complex, multi-tiered subcontracting system, which is foundational to its manufacturing and industrial competitiveness. 'It will inevitably trigger disputes targeting prime contractors, fracturing supply chains and damaging Korea's global competitiveness,' he said. Lee added that the proposed legislation could paralyze executive decision-making by exposing business leaders to 'indiscriminate criminal liability.' He also cautioned that limiting damage claims against unions could lead to a 'culture of strike absolutism,' normalize illegal workplace disruptions and weaken productivity across sectors. 'These sectors are already under pressure from global market shifts and sensitive trade negotiations. This bill could tip them into deeper instability,' he said.
Korea Herald
29-07-2025
- Business
- Korea Herald
European chamber raises alarm over Korea's 'Yellow Envelope' bill
The European Chamber of Commerce in Korea is urging a revision of the proposed 'Yellow Envelope Law,' warning that its implementation could prompt foreign companies to withdraw from the Korean market. According to the National Assembly on Tuesday, the bill, which would revise Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act, passed the Environment and Labor Committee's plenary session Monday. The Democratic Party-led proposal was twice vetoed under former President Yoon Suk Yeol, but is being revived under the new DP-led administration. A key provision in the amendment expands the definition of 'employer' to include any entity that 'substantially and specifically controls and determines working conditions,' even if it is not a signatory to an employment contract. The intention is to cover subcontracted laborers on a company's worksite. The ECCK stated that this expanded definition of 'employer' broadens the scope of legal liability, thereby undermining the principle of legal certainty. 'Given the numerous criminal sanctions imposed on employers under the Trade Union Act, this vague and expanded definition may treat business operators as potential criminals and significantly discourage business activity,' the chamber said in a statement Monday. 'The impact is particularly severe for foreign-invested companies, which are highly sensitive to legal risks stemming from labor regulations.' The ECCK also warned of increased conflicts between primary contractors and subcontractors, a rise in strikes by subcontracted workers, and destabilization of the subcontracting ecosystem. It added that the law could shift labor culture from dialogue to confrontation. Citing these potential risks, the ECCK, which represents around 400 European companies with Korean subsidiaries, is calling for a revision of the amended law.
