Eight Major Economic Organizations: "Rapid Passage of Commercial and Trade Union Act Amendments in National Assembly Could Cause Extreme Confusion"

Joint Statement on the 29th: "A Sense of Devastation Beyond Concern"
"Setting a Trap for Ourselves Amid Uncertainty in Tariff Negotiations"

The business community has expressed serious regret and concern, urging a reconsideration regarding the accelerated additional amendments to the Commercial Act and the passage of the Yellow Envelope Act (amendments to Articles 2 and 3 of the Trade Union Act) by the National Assembly plenary session.

The Eight Major Economic Organizations (Korea Enterprises Federation, Korea Chamber of Commerce and Industry, Korea Employers Federation, Korea International Trade Association, Korea Federation of SMEs, Korea Federation of Middle Market Enterprises, Korea Listed Companies Association, and KOSDAQ Listed Companies Association) released a joint statement on the 29th, saying, "Despite the grave economic situation, we cannot help but feel not only deep concern but also a sense of devastation at the rapid progress of the amendments to the Commercial Act and the Trade Union Act in the National Assembly."

Previously, the amendment to the Commercial Act, which included provisions such as the '3% rule' and the 'expansion of directors' fiduciary duty,' was passed in the legislative subcommittee less than a week after its promulgation on the 22nd, with additional provisions such as the mandatory cumulative voting system. The Yellow Envelope Act also passed both the legislative subcommittee and the plenary session in a single day.

In response, the Eight Major Economic Organizations pointed out, "At this critical moment, when the government, the National Assembly, and businesses must unite to overcome the crisis, the National Assembly's continued passage of regulatory legislation that restricts business activities could cause extreme confusion for companies." They added, "It is regrettable that, amid the uncertainty of tariff negotiations, we may be setting a trap for ourselves."

Regarding the additional amendments to the Commercial Act in particular, they emphasized, "This could lead to unreasonable demands from foreign speculative capital, such as opposition to business restructuring and the sale of key assets, making it difficult to restructure core industries and secure new growth engines." They also stated, "The amendment to the Trade Union Act is also of serious concern, as it expands the scope of employers, includes companies' unique management activities as subjects of labor disputes, encourages an overreliance on strikes, and undermines the stability of labor-management relations, among other serious side effects."

They continued, "As the new administration has expressed its commitment to growth-oriented economic policies, now is the time for the government, the National Assembly, and businesses to unite and mobilize all their capabilities to overcome the crisis." They appealed, "We hope the National Assembly will take the lead in creating an environment where companies can do their utmost to reignite dwindling growth momentum and create quality jobs." They also added, "We sincerely urge the National Assembly not to ignore the difficulties and desperate appeals faced by our companies, and to withdraw unnecessary regulations and thoroughly reconsider the amendments from the perspective of the national interest, so that companies can focus on overcoming strong external challenges."

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