Korea Federation of SMEs Requests Supplementation of Yellow Envelope Act and Commercial Act from Ruling Party... Democratic Party Promises Feedback in September

The Korea Federation of SMEs met with the Democratic Party of Korea to request follow-up measures regarding the Yellow Envelope Act (Articles 2 and 3 of the Trade Union Act), the amendment to the Commercial Act, and negotiations on steel and aluminum tariffs. The Democratic Party plans to review the federation's requests and inform them of their decision within this month.

Yonhap News Agency

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After the policy meeting between the Democratic Party and the Korea Federation of SMEs held on September 4 in Yeouido, Seoul, Democratic Party spokesperson Kwon Hyangyeop told reporters, "Policy Committee Chairperson Han Jeongae and SME Special Committee Chairperson Kwon Chilsung have agreed to consult together and provide feedback on whether to accept the federation's proposals within this month." She added, "In order to actively listen to voices from the field and communicate, we also agreed to meet at least once every three months."

The Korea Federation of SMEs pointed out the lack of employer defense rights in the recently approved amendment to the Yellow Envelope Act at the Cabinet meeting, and conveyed the opinion that these rights should be equally guaranteed, comparable to those of workers. The Yellow Envelope Act will take effect six months after the date of promulgation.

The federation also called for a relaxation of the breach of trust offense in the amendment to the Commercial Act being promoted by the ruling party. Spokesperson Kwon said, "There is a need to address the vulnerability to management rights attacks by private equity funds and others, as it is difficult to defend management rights under the current breach of trust offense." She added, "There was also a request to codify the principle of business judgment to ensure the protection of corporate management activities."

Additionally, the federation requested that the 50% item tariff imposed on steel and aluminum be reduced to 25% through negotiations. The federation reportedly shared that exports are becoming difficult or delivery deadlines are being delayed due to the tariffs. Other proposals included requiring country of origin labeling for each product to respond to Chinese imports, and expanding long-term policy financing and guarantee support for the U.S. export automobile industry.

In response, Representative Jung said, "Reform is to correct what is wrong," and added, "SMEs must also strive to reform their own practices, and the National Assembly and the government will actively review system improvements." He emphasized the importance of continuous communication, citing the phrase, "If there is communication, there is no pain; if there is no communication, there is pain."

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