Kyungsik Sohn: "Investment and Employment Will Decline Without Predictability in the Yellow Envelope Act and Serious Accidents Punishment Act"

by Oh Hyungil

Published 13 May.2026 13:49(KST)

KEF Holds 1st ESG Management Committee Meeting

Kyungsik Sohn, Chairman of the Korea Employers Federation, pointed out concerns regarding Articles 2 and 3 of the Trade Union Act (commonly referred to as the Yellow Envelope Act) and the Serious Accidents Punishment Act. He stated, "No matter how well-intentioned the legislation may be, if on-site feasibility, international alignment, and predictability regarding legal risks are not ensured, investment and employment will inevitably be dampened."


At the '1st ESG (Environmental, Social, and Governance) Management Committee Meeting of 2026' held at the Press Center on the 13th, participants are taking a commemorative photo. In the front row from the left are Jutae Lee, President of POSCO Holdings; Hyunghee Lee, Vice Chairman of SK; Seunghui Park, President of Samsung Electronics; Sumi Lee, President of OCI Holdings; Kyungsik Son, Chairman of the Korea Employers Federation; Changjun Kwon, Vice Minister of Employment and Labor; Hyungkwan Kim, President of HD Hyundai Heavy Industries; Jonggil Jung, Executive Director of Daewoo Engineering & Construction. In the back row from the left are Inseop Jung, President of Hanwha Ocean; Wangsang Lee, Executive Director at GS; Junseong Park, Vice President of LG; Jinkuk Kim, Vice President of CJ Corporation; Jindal Lim, President of HS Hyosung Advanced Materials; Donggeun Lee, Senior Vice President of the Korea Employers Federation; Wonyoung An, President of LS. Photo by Korea Employers Federation

At the '1st ESG (Environmental, Social, and Governance) Management Committee Meeting of 2026' held at the Press Center on the 13th, participants are taking a commemorative photo. In the front row from the left are Jutae Lee, President of POSCO Holdings; Hyunghee Lee, Vice Chairman of SK; Seunghui Park, President of Samsung Electronics; Sumi Lee, President of OCI Holdings; Kyungsik Son, Chairman of the Korea Employers Federation; Changjun Kwon, Vice Minister of Employment and Labor; Hyungkwan Kim, President of HD Hyundai Heavy Industries; Jonggil Jung, Executive Director of Daewoo Engineering & Construction. In the back row from the left are Inseop Jung, President of Hanwha Ocean; Wangsang Lee, Executive Director at GS; Junseong Park, Vice President of LG; Jinkuk Kim, Vice President of CJ Corporation; Jindal Lim, President of HS Hyosung Advanced Materials; Donggeun Lee, Senior Vice President of the Korea Employers Federation; Wonyoung An, President of LS. Photo by Korea Employers Federation

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At the '1st ESG (Environment, Social, and Governance) Management Committee Meeting of 2026' held on the 13th at the Press Center, Chairman Sohn remarked, "There is no disagreement that worker protection and industrial safety are crucial values that companies must uphold in ESG management," emphasizing his position.


He further noted, "Recently, major countries such as the European Union are continuing to introduce ESG-related regulations, but they are also showing flexibility by adjusting the speed and scope of these regulations with consideration for corporate burdens and industrial competitiveness. It is necessary to pursue rational and predictable system operations from a thorough national interest perspective."


He continued, "In the case of the Trade Union Act, there are considerable concerns that issues such as recognizing the principal contractor as the employer and the scope of collective bargaining could undermine labor-management stability and cause confusion in the industrial field. Likewise, there are ongoing worries at worksites that the Serious Accidents Punishment Act still lacks clarity regarding its scope of application and criteria for responsibility."


This committee is the highest-level ESG consultative body within the business sector, with 19 executives from major domestic groups, including the top 10 conglomerates, participating as members. At this meeting—the first since the committee’s launch in April 2021 to be attended by the Ministry of Employment and Labor (represented by Vice Minister Changjun Kwon)—a policy discussion was held on "The direction of system operation and corporate challenges related to the Trade Union Act and Serious Accidents Punishment Act."


The committee members collectively voiced that, as they shared on-site challenges, it is necessary to identify and resolve hidden areas of conflict within current laws in order to expand autonomous ESG management. They also noted that while support for supply chains is essential to address ESG issues, there is growing confusion over whether such support to partner companies might be interpreted as grounds for employer status.


In addition, although four years have passed since the implementation of the Serious Accidents Punishment Act, its provisions remain ambiguous in practice, making legal compliance difficult at worksites. The committee highlighted the need to shift the regulatory focus of industrial safety—following the example of advanced economies—from "punishment and supervision" to "preventive measures."



Changjun Kwon, Vice Minister of Employment and Labor, stated, "The interest and active engagement of both labor and management are crucial for protecting workers and preventing workplace accidents." He added, "We will strengthen on-site support, especially for small businesses, to help establish a strong safety culture." He also emphasized, "Labor-management conflicts should not be escalated into confrontation, but rather be resolved through dialogue. With the revised Trade Union Act institutionalizing dialogue, we will make every effort to foster a cooperative labor-management relationship rooted in mutual problem-solving through ongoing communication."