Government Ignores Business Sector Appeals, "Labor-Management Balance Collapsing"

[Asia Economy Reporter Changhwan Lee] Although the government has recently emphasized communication with businesses, it has been revealed that the appeals of the business community are still not reflected in the legislative process of bills regulating companies.

According to the business community on the 6th, the major corporate regulatory laws created or being promoted since the inauguration of the Moon Jae-in administration in 2017 include the amendment to the Labor Union Act, the amendment to the Labor Standards Act, the amendment to the Commercial Act and the Fair Trade Act, and the Serious Accidents Punishment Act.

Among these, the business community has continuously demanded that the government and the National Assembly balance the power between labor and management, arguing that the amendment to the Labor Union Act, which took effect from this day, is a regulation that excessively strengthens the rights of labor unions, but their demands were ultimately not accepted.

Professor Heesung Kim of Kangwon National University Law School pointed out, "Our Labor Union Act is not regulated in accordance with labor-management equality, and it strongly guarantees only the labor union’s means of dispute, so there is no substantial balance between labor and management at all."

The amendment to the Labor Standards Act, which centers on the 52-hour workweek, is also a regulatory bill that does not properly reflect the demands of companies. In particular, small and medium-sized enterprises expected to suffer damage from the introduction of the 52-hour system requested the government for a grace period, but the government pushed ahead with enforcement from this month.

The Serious Accidents Punishment Act, for which enforcement ordinances are currently being drafted, is also a regulatory bill that weakens management rights, but the atmosphere is that the demands of the business community are being excluded.

Once the Serious Accidents Punishment Act is enforced, CEOs or business owners of companies where serious accidents such as worker deaths occur can be criminally punished. The business community has continuously requested the government to supplement the enforcement ordinance, arguing that the level of criminal punishment for management responsibility is too high and overlaps with existing laws such as the Industrial Safety Act, raising concerns about double punishment.

The amendment to the Commercial Act, which was controversial earlier this year, was similar. The business community requested the abolition of the 3% rule, which limits the voting rights of the largest shareholder to 3% when appointing audit committee members separately, arguing that it does not conform to the basic rules of the market economy. However, the government only revised the bill to partially ease the voting rights of the largest shareholder and related parties from a combined 3% to an individual 3%.

A business community official said, "Since the current administration took office, laws and policies that impose enormous burdens on corporate management have continued to be regulation-oriented," adding, "With world-class regulations imposed on companies, the competitiveness of our industries and companies may decline."

This content was produced with the assistance of AI translation services.