Economic Sector Expresses Regret Over National Assembly's Passage of the 'Noranbongtu Act' "Negative Effects Are Clear"

KCCI, KCCI, HANKYOUNGHYUP, and KITA Express Concerns
"Encouraging Illegal Strikes and Weakening Business Activities"

On the 5th, economic organizations collectively expressed their regret as the so-called 'Yellow Envelope Act (Amendment to the Labor Union and Labor Relations Adjustment Act)' passed the plenary session of the National Assembly.

The Korea Chamber of Commerce and Industry (KCCI) immediately issued a statement upon the passage of the Yellow Envelope Act, stating, "We feel devastated and cannot help but express great concern over the amendment passing the plenary session of the National Assembly."

The KCCI said, "If the amendment to the Labor Union Act is implemented as is, it is clear that there will be significant negative ripple effects on all aspects of the economy, including labor-management relations, jobs, cooperation between companies, and the foreign investment environment," adding, "It should never lead to legislation."

The Korea Employers Federation (KEF) said, "The only way to prevent the confusion in industrial sites and economic catastrophe that the bill will bring is the presidential veto," and "We urge the exercise of the veto power so that companies can conduct their business normally."

The KEF argued, "The amendment virtually blocks claims for damages, encouraging extreme illegal strikes," and "It also expands the scope of employers with vague concepts, turning businesspeople into potential criminals and severely restricting management activities."

The Korea Economic Association (KEA) also expressed, "We deeply regret that despite opposition from all sectors, the amendment to the Labor Union Act was passed in the plenary session of the National Assembly," and stated, "The amendment raises serious concerns about promoting 'struggle omnipotence'."

The KEA emphasized, "The amendment will significantly weaken our economy's growth potential, including the decline of corporate global competitiveness and investment contraction," and "We request a comprehensive review of the amendment."

The Korea International Trade Association (KITA) also released a commentary on the same day, stating, "The amendment clearly has legal defects and imbalances, such as expanding the scope of employers and exempting liability for damages for illegal union activities," and "Despite repeated voices from the economic sector, it is hard to accept the forced passage in the National Assembly."

They added, "If strike omnipotence becomes widespread in industrial sites in the future, irreversible damage is expected to occur throughout the macroeconomy, including not only trade but also investment contraction by domestic and foreign companies and job reductions," and "To prevent the collapse of trade and the economy, the exercise of the president's re-request authority is absolutely necessary."

The Korea Federation of Medium-sized Enterprises (KFME) said in a statement, "The Yellow Envelope Act, which was scrapped by the president's re-request at the end of last year, passed the plenary session of the National Assembly in an even more aggravated state," and "This will be recorded as a representative case of insensitivity and irresponsibility that ignores the real sense of crisis in the corporate field and even crushes hopes for economic recovery."

The KFME continued, "To prevent the flame of economic recovery, which is barely revived mainly through exports, from being completely extinguished, decisive and active action by the government, including the president's re-request authority guaranteed by the Constitution, is necessary," and "We must clearly identify the irrationality of the Yellow Envelope Act and seek alternatives for establishing desirable labor-management relations from scratch."

The Yellow Envelope Act is a bill that strengthens the primary contractor's responsibility for subcontracted workers, expands the scope of strike actions, and limits companies' claims for damages against striking workers.

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