AMCHAM Chairman Voices Concerns Over Yellow Envelope Act in Meeting With Kim Byungki... Democratic Party Says "Will Proceed as Planned"

AMCHAM: "U.S. Companies Are Concerned... Please Maintain Communication Moving Forward"
Democratic Party: "Business Community Demands Already Reflected... No Amendments Possible"

On August 19, James Kim, chairman of the American Chamber of Commerce in Korea (AMCHAM), which represents over 800 American companies operating in South Korea, met with the leadership of the Democratic Party of Korea to express concerns regarding the Yellow Envelope Act (the amendment to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act). However, the Democratic Party maintained its position that the bill would be processed during the August extraordinary session of the National Assembly, which begins on August 21.

During the meeting at the National Assembly that morning, Chairman Kim met with Kim Byungki, floor leader of the Democratic Party, and other party leaders. He stated, "I believe Korea has a significant opportunity to strengthen its leadership in the global supply chain and to deepen the Korea-U.S. technology alliance. To achieve this, it is important for Korea to position itself as the most attractive country where even more foreign companies are eager to invest." He continued, "A predictable and stable political and regulatory environment is crucial for Korea to become a more attractive investment destination for multinational companies. In this context, I am concerned that the passage of the Yellow Envelope Act in the National Assembly could negatively affect Korea's status as a regional hub in Asia."

Chairman Kim also emphasized the importance of Kim Byungki's leadership, noting that since AMCHAM has decided to form a joint task force with the Ministry of Employment and Labor, the National Assembly should thoroughly review industry opinions regarding the Yellow Envelope Act. He added, "Given the current significant geopolitical transition, AMCHAM is fully prepared to serve as a bridge connecting Korea and the United States, and to do its utmost to ensure the success of the 2025 Asia-Pacific Economic Cooperation (APEC) Summit and further strengthen economic cooperation."

Floor Leader Kim stated, "What companies want are predictable policies and transparent regulations," adding, "The government and the Democratic Party are firmly committed to improving unreasonable regulations." He further remarked, "It is also very important to help foreign-invested companies operate stably," and expressed hope for cooperation between the two sides at the Korea-U.S. summit at the end of the month and the APEC summit in October.

Kim Byungki, floor leader of the Democratic Party of Korea, and James Kim, chairman of the American Chamber of Commerce in Korea (AMCHAM), are meeting and conversing at the National Assembly on August 19, 2025. Photo by Kim Hyunmin

During the closed-door meeting, AMCHAM also voiced concerns from American companies regarding the Yellow Envelope Act and requested ongoing communication with businesses and regulatory improvements. After the meeting, Chairman Kim told reporters, "The Yellow Envelope Act is causing a lot of concern among American companies right now. Even if the bill passes, I believe there will be sufficient communication with the industry going forward," adding, "I asked (Floor Leader Kim) to ensure that if any problems arise, our opinions can be fully reflected immediately."

Nevertheless, the Democratic Party maintains its position that the Yellow Envelope Act, having been under discussion for a long time, will be processed. Heo Young, senior deputy floor leader for policy of the Democratic Party, said, "The Yellow Envelope Act will be processed as scheduled. There will be no amendments." He added, "AMCHAM also expected the bill to be processed at this plenary session. That is why they emphasized the importance of messaging after the bill is passed." He continued, "Since AMCHAM highlighted that Korea remains an attractive investment destination, it does not appear that the Yellow Envelope Act itself will create an environment where companies withdraw or cancel investments in Korea."

Earlier in the day, Democratic Party spokesperson Kim Hyunjung told reporters after the party's policy meeting at the National Assembly, "The Yellow Envelope Act has been under discussion for quite a long time. Even though we incorporated business community opinions to make the bill more acceptable, the People Power Party's call to reopen discussions is an attempt to frame the Democratic Party as engaging in legislative overreach."

Lee Yongwoo, a member of the National Assembly's Environment and Labor Committee and deputy floor leader of the Democratic Party, also stated, "The definition of labor disputes in the bill reflects the demands of the business community. Compared to the bill passed under the Yoon Suk-yeol administration last year, this is a more restrained version." He emphasized, "The labor community's request to revise the definition of 'worker' was not included during the discussions, and the clause limiting liability for damages, which was the business community's top concern, was deleted." Lee added, "If an employer does not wish to bear responsibility, they simply should not be involved in subcontracting businesses or labor. If they are involved but refuse to accept responsibility as an employer, the public will not accept that."

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