Oh Sehoon Targets Yellow Envelope Act: "Policies Undermining the Future Must Be Blocked by Public Resistance" (Comprehensive)

Seoul Mayor Oh Sehoon strongly criticized the "Yellow Envelope Act" (the amendment to Articles 2 and 3 of the Trade Union Act) being pushed by the government and the ruling party, calling it "populism that destroys the incentive system itself to the point of undermining the free market economic order." Mayor Oh stated, "Under any circumstances, the public must resist and prevent this."

On the morning of the 21st at City Hall, Mayor Oh made these remarks during a discussion with James Robinson, professor at the University of Chicago and Nobel Prize in Economic Sciences laureate, under the theme "The Path to Sustainable Prosperity."

Seoul Mayor Oh Sehoon is speaking at a special talk titled "The Path to Sustainable Prosperity" with Nobel Economics Prize winners invited, held at Seoul City Hall on the 21st. Photo by Yonhap News

원본보기 아이콘

The so-called Yellow Envelope Act, which refers to the amendment to Articles 2 and 3 of the Trade Union Act, expands the definition of "employer" to those who can substantially control or determine working conditions, grants subcontracted workers the right to negotiate with the principal company, and restricts companies from claiming damages against workers participating in strikes. The Democratic Party of Korea has announced its intention to put the Yellow Envelope Act to a vote on the 23rd, but the business community is fiercely opposing it, citing concerns about infringement on management rights and a potential increase in lawsuits for breach of fiduciary duty.

On this day, Mayor Oh also pointed out, "The core of the Yellow Envelope Act is to exempt illegal strikes from damage claims," adding, "Although it is outwardly packaged as an advanced system, it is obvious that it will ultimately make job opportunities for young people as scarce as the eye of a needle." He continued, "If employment flexibility, where dismissals are easy, were guaranteed as in the United States, it might be compatible, but in our country, dismissals are rigid," and added, "If illegal strikes become rampant on top of that, corporate competitiveness will inevitably decline significantly, which young people are well aware of-will they really accept this?"

Mayor Oh emphasized, "Introducing policies that undermine future competitiveness after coming to power and disguising them as being well-intentioned is a shortcut to a failed administration," adding, "Populism that destroys the free market economic order must be prevented by the public under any circumstances."

Regarding populism, Professor Robinson also commented, "Currently, democracy is under attack worldwide, so populism can be described as anti-institutional," and added, "To counter populism, we must improve democratic institutions and demonstrate their effectiveness in genuinely helping people." He also noted regarding various national regulations, "Laws and regulations have played an important role in building shared prosperity, but it is necessary to reconsider what can be achieved through regulation."

Seoul Mayor Oh Sehoon and James Robinson, professor at the University of Chicago, USA, are watching a video at the special dialogue titled "The Path to Sustainable Prosperity" with the 2024 Nobel Economics Prize laureates held at Seoul City Hall on the 21st. Photo by Yonhap News

원본보기 아이콘

Before the discussion, Mayor Oh stated, "Only inclusive institutions with broad participation can lead a country to growth and prosperity," and said that this philosophy is reflected in Seoul's policies for the underprivileged. Professor Robinson, who researches the relationship between politics and economic growth and national prosperity, has often cited Korea as a successful model. Mayor Oh introduced major welfare policies promoted by Seoul, such as "Companion for the Underprivileged," "Stepping Stone Income," and "Seoul Learn," saying, "A society where inequality does not end in frustration but leads to new challenges-that is the path to prosperity I believe in."

Professor Robinson delivered his views on "Korea's Economic Development and the Importance of Democracy" in a TED-style lecture, limited to 18 minutes per talk. He evaluated, "Korea's economic growth was made possible by inclusive economic and political institutions." He added, "For Korea to continue to prosper, it must maintain democracy internally and strengthen democratic alliances with other countries externally."

Mayor Oh and Professor Robinson held a discussion centered on "Institutions for Sustainable Growth and Prosperity." Mayor Oh emphasized, "The foundation of Korea's prosperity was the assurance that challenges would be rewarded justly," and added, "My policy philosophy is embedded in Seoul's policies for the underprivileged, such as Stepping Stone Income and Seoul Learn."

Stepping Stone Income, which aims to serve as a ladder for upward mobility, is a policy that provides partial income support to low-income households. It is a welfare system where those with lower incomes receive more support. Now in its fourth year, Stepping Stone Income is regarded as a model for a future-oriented social security system with sustainability. Seoul Learn, which provides free high-quality online lectures and mentoring to students from vulnerable groups, has also been recognized as a structural solution to educational inequality.

Professor Robinson gave detailed answers to questions about the success factors for Korea mentioned in his book "Why Nations Fail," his warnings about populism, and his vision for the future of Korea and its younger generation. During the Q&A session, participants asked Professor Robinson about "strategies to respond to a future society with a declining population" and "national development strategies in the AI era," while Mayor Oh was asked about "selective versus universal welfare and what kind of welfare is necessary for national growth."

Mayor Oh stated, "The deep insights I gained from Professor Robinson's books in my long pursuit of the path to urban and national prosperity have become the foundation for Seoul’s policies for the underprivileged," and added, "I believe today's discussion has provided new insights and inspiration to all participants, including myself, and I hope it will serve as a milestone for sustainable national prosperity."

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.