Six Major Economic Organizations Express Concerns to Ruling Party over Commercial Act and Yellow Envelope Act, Agree to Further Discussions on Improvements

Meeting Between Democratic Party Floor Leadership and Six Major Economic Organizations on the 25th
Concerns Over Business Activity Restrictions... Ruling Party Agrees to Further Discussions

The six major economic organizations met with the floor leadership of the Democratic Party of Korea to express their concerns regarding the proposed amendments to the Commercial Act and the so-called Yellow Envelope Act (amendments to Articles 2 and 3 of the Trade Union Act) being promoted by the ruling party. They agreed to hold further discussions to supplement aspects of the bills that could potentially restrict business activities.

Yonhap News

After a closed-door meeting between Kim Byungki, the Democratic Party's floor leader, and the executive vice presidents of the six economic organizations held at the National Assembly in Yeouido on the 25th, Kim Hyunjung, the party's floor spokesperson, stated, "The organizations conveyed their concerns regarding the Commercial Act and the Yellow Envelope Act," adding, "They mentioned these issues at a general level, in line with previous discussions." The six economic organizations consist of the Korea Chamber of Commerce and Industry, the Federation of Korean Industries, the Korea International Trade Association, the Korea Employers Federation, the Korea Federation of SMEs, and the Korea Federation of Middle Market Enterprises.

The Democratic Party appears to have decided to focus on supplementing the aspects of the Commercial Act and Yellow Envelope Act that are of concern to businesses, as their passage through the National Assembly is considered a predetermined step, given that they are included in the government’s policy agenda. Kim Namgeun, the Democratic Party's deputy head of livelihood affairs, said, "In light of the passage of the Commercial Act amendment, we will hold additional meetings to discuss the issues raised by the business community, such as concerns over breach of trust charges and the need for measures to defend management rights." He added, "Although the general direction for the Yellow Envelope Act has been set, there was also a suggestion to engage in further dialogue regarding possible improvements to its content."

In addition, the organizations reportedly requested that the Democratic Party pursue a shift to a negative regulatory approach in new technology sectors, establish systems to promote investment in infrastructure, conduct regulatory impact assessments, and expedite the handling of business-related bills currently pending in the National Assembly.

Meanwhile, before the meeting was switched to a closed session, Kim, the floor leader, stated in his opening remarks, "Businesses are the main drivers of economic recovery and growth," emphasizing, "The government and the National Assembly must provide support through policies and legislation so that companies can have confidence in future growth." Park Iljun, executive vice president of the Korea Chamber of Commerce and Industry, said, "We hope you will create an environment where businesses can invest with predictability by resolving economic uncertainties," and requested, "Please ensure that legislative tasks to boost economic vitality?such as building AI data centers, providing tax support for advanced strategic industries, and adopting negative regulation?are discussed swiftly in the National Assembly."

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