Seoul: South Korea's business lobby groups on Monday expressed regret over the passage of a labor bill broadening workers' rights over the weekend, calling for government efforts to protect and ensure the smooth operation of businesses. On Sunday, the National Assembly passed the so-called "yellow envelope bill" in a vote led by the ruling Democratic Party.
According to Yonhap News Agency, the country's eight major business lobby groups issued a joint statement warning that the revisions could lead to management disputes and increase lawsuit risks. They urged the parliament to pursue balanced legislative efforts to minimize potential side effects of the bill. The groups emphasized the need for protective measures that meet global standards to safeguard a business environment free from speculative capital threats.
The revisions to Articles 2 and 3 of the Labor Union Act enhance bargaining rights for indirectly employed subcontracted workers. The bill also restricts companies from filing lawsuits for damages or provisional seizures against unionized workers, a tactic labor unions claim has been used to suppress strikes.
Additionally, the lobby groups called for a "reasonable" revision of rules related to breach of duty and the inclusion of the business judgment rule, which protects executives from liability when making informed business decisions. They also suggested applying differentiated regulations and incentives based on company size.
The American Chamber of Commerce in Korea (AMCHAM) echoed these concerns, urging the government to establish a transparent and predictable business environment following the bill's passage. AMCHAM Chairman James Kim highlighted the direct impact of business environment uncertainty on corporate confidence and long-term planning, stressing the importance of clear governmental standards to maintain Korea's competitiveness as a global business hub.
The revised act is set to take effect six months after its promulgation.