Yellow Envelope Act Passes National Assembly Despite Business Concerns... Second Round of Commercial Act Amendments Set for Tomorrow

The Yellow Envelope Act (amendments to Articles 2 and 3 of the Trade Union Act), which had raised concerns in the business community, passed the plenary session on August 24 under the leadership of the Democratic Party of Korea. The second round of amendments to the Commercial Act is also expected to be processed under the Democratic Party's initiative on August 25.

At the plenary session that day, the National Assembly passed the Yellow Envelope Act with 183 votes in favor and 3 against out of 186 lawmakers present. The Democratic Party led the passage, with People Power Party lawmakers absent.

The core of the Yellow Envelope Act is to expand the definition of "employer," thereby granting subcontracted workers and others the right to negotiate with the original contractor. It also includes provisions to restrict damage claims against striking workers.

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The business sector appealed for reconsideration of the bill, arguing that it would undermine the minimum stability and balance in labor-management relations and threaten management stability. Even if the bill were to pass, they requested a one-year grace period to prevent the definition of "employer" and the scope of "industrial disputes" from becoming excessively broad. In particular, they insisted that "managerial decisions" such as restructuring and overseas investment be explicitly excluded from the scope of labor disputes.

The People Power Party, reflecting the concerns of the business community, launched a full-scale response through a filibuster (unlimited debate), but only managed to delay the process for 24 hours. According to the National Assembly Act, if debate time such as a filibuster exceeds 24 hours, the debate can be ended and the bill put to a vote with the approval of three-fifths (180 seats) of the total members.

The Democratic Party plans to pass the second round of amendments to the Commercial Act following the Yellow Envelope Act. The key points of these amendments are to make cumulative voting mandatory when listed companies with assets of 2 trillion won or more appoint directors, and to increase the number of audit committee members elected separately from other directors from one to two.

Kim Byungki, floor leader of the Democratic Party, stated on social media that "the passage of the Yellow Envelope Act has elevated the three labor rights guaranteed by the Constitution," and added, "We will immediately begin a filibuster on the Commercial Act, which will be processed tomorrow."

The People Power Party has also announced a filibuster against the Commercial Act amendments. However, it appears that the bill will be put to a vote at the National Assembly plenary session on August 25, as the Democratic Party is expected to end the debate.

As a result, the legislative process for the controversial bills led by the Democratic Party since August 21 is expected to conclude on August 25. Prior to the Yellow Envelope Act and the second round of Commercial Act amendments, the Democratic Party had already passed the so-called "three broadcasting laws."

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