Minister Kim Younghoon Makes Last-Minute Appeal to Business Leaders Ahead of "Yellow Envelope Act" Vote

Second Visit to Korea Federation of SMEs After Taking Office
Addressing Concerns Ahead of National Assembly Vote on the 21st

On August 19, Minister of Employment and Labor Kim Young Hoon visited the Korea Federation of SMEs, making a last-minute effort to address concerns within the business community ahead of the handling of the so-called "Yellow Envelope Act" (the amendment to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act).

On this day, Minister Kim visited the Korea Federation of SMEs in Yeouido, Seoul, where he met with President Kim Ki Moon, executives, and representatives of major industry cooperatives to discuss the amendment to the Yellow Envelope Act. This visit came just over a month after his first visit to the Federation as his inaugural external schedule following his appointment on July 24.

During the meeting, Minister Kim reiterated, "The amendment to Articles 2 and 3 of the Trade Union Act serves as a foundation for shifting from a disconnected structure between principal contractors and subcontractors to a cooperative relationship," adding, "This law aims to reduce disputes through horizontal dialogue rather than a vertical structure, and to enable both principal and subcontracting companies to grow together." The Yellow Envelope Act centers on the revision of Articles 2 and 3 of the Trade Union Act. The amendment expands the definition of "employer," allowing subcontracted workers to negotiate directly with principal contractors, and limits companies' ability to claim damages against workers for losses incurred during industrial action.

To address the concerns and anxieties of the business community, Minister Kim pledged institutional support. He stated, "Even after the law is amended, we will continue to communicate with the business sector and reflect their opinions by operating an on-site support task force (TF) at all times," and added, "During the six months before the law takes effect, we will develop detailed manuals and guidelines to resolve uncertainties in the field." He particularly emphasized that the government would strengthen mediation support during negotiations between principal and subcontracting companies to alleviate difficulties faced by subcontractors.

Kim Ki Moon, President of the Korea Federation of SMEs, Giving a Greeting
(Seoul=Yonhap News) Photo by Lim Hwayoung = Kim Ki Moon, President of the Korea Federation of SMEs (left), is giving a welcoming greeting to Kim Young Hoon, Minister of Employment and Labor, who visited the Korea Federation of SMEs in Yeongdeungpo-gu, Seoul on July 24, 2025. hwayoung7@yna.co.kr (End)

Minister Kim's visit to the Korea Federation of SMEs is seen as an effort to directly listen to the voices of the business community ahead of the extraordinary session of the National Assembly scheduled for August 21. The Democratic Party of Korea has announced its intention to put the Yellow Envelope Act to a vote during this session.

However, it remains uncertain how effective Minister Kim's efforts will be, given the persistent distrust within the business sector regarding the content of the bill itself. The six major economic organizations, including the Korea Federation of SMEs, held a joint press conference the previous day, appealing to the National Assembly to reconsider the bill. The business community has requested that, even if the bill passes, the implementation period be delayed by at least one year. They also argued that adjustments are needed to prevent the scope of "employer" and the range of industrial action from becoming excessively broad.

The Ministry of Employment and Labor reiterated its commitment, stating, "Even if the bill is enacted, we will establish detailed guidelines to prevent confusion in the field and strengthen our coordination role to ease the burden on small and medium-sized enterprises."

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