FedChamber: "Three Corporate Regulation Laws Require Supplementary Measures Such as Management Rights Defense Tools"

Federation of Korean Industries

[Asia Economy Reporter Dongwoo Lee] The Federation of Korean Industries (FKI) appealed for the establishment of supplementary measures, including the introduction of management rights defense mechanisms, ahead of the National Assembly's passage of the government's three corporate regulation laws.

On the 9th, through an "Urgent Appeal from the Economic Community Regarding the Three Corporate Regulation Laws and Labor Relations Laws," the FKI stated, "Despite the economic community's appeal for careful deliberation in the National Assembly considering the impact of the three corporate regulation laws on the public and businesses, the passage of these three regulation laws and labor relations laws is imminent."

The FKI reiterated concerns that "if the three corporate regulation laws are passed, they will shrink our companies that should be focusing on investment and jobs, and cause side effects by exposing them to attacks from foreign speculative capital."

It added, "There are concerns about the leakage of trade secrets and core technologies by auditors appointed by speculative capital, as well as the need to endure damage to corporate image due to indiscriminate lawsuits by stakeholders," warning that "investment and jobs will decrease, ultimately negatively affecting the entire national economy."

It also criticized, "The proposed amendments to the Labor Union Act, such as allowing dismissed and unemployed workers to join unions and paying wages to full-time union officials, will deepen the imbalance of power between labor and management and further deteriorate backward labor-management relations, thereby lowering corporate competitiveness."

The FKI requested, "To overcome the economic crisis caused by the resurgence of the novel coronavirus disease (COVID-19) and to correct the confusion in workplaces due to the urgent implementation period, we ask for the extension of the enforcement period of each law by one year to prepare supplementary measures such as the introduction of management rights defense mechanisms and allowing substitute labor during strikes."

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