Wednesday, August 20, 2025

South Korean Business Groups Warn of Risks in Yellow Envelope Bill

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South Korean business groups are pressing lawmakers to delay the Yellow Envelope bill. They warn that the legislation will harm industries and weaken workplace stability. Leaders from six major associations spoke out in a joint statement. They argue the bill will cause uncertainty in both local and global markets.

The groups held their event at the National Assembly to show unity. They cautioned that rushing the bill forward would damage labor relations. They also asked lawmakers to postpone enforcement for at least one year. According to them, this delay would allow dialogue between workers and management. They believe more consultation could prevent serious conflicts.

The Yellow Envelope bill expands the definition of an employer. It allows unions to negotiate with anyone who controls working conditions. That includes subcontractors and outsourced workers in many industries. Business leaders say this expansion will create major confusion. They worry that companies could face hundreds of union demands at once.

Another part of the bill blocks companies from seeking compensation after legitimate strikes. Industry leaders admit workers should not face heavy financial burdens. Still, they argue that better options exist. They suggest legal caps on damage claims and clear rules on wage protection. These proposals, they say, would balance worker support with company needs.

Furthermore, business groups reject broader definitions of labor disputes. The bill includes corporate restructuring and overseas investment as possible strike grounds. Companies fear this will make global growth very difficult. They stress that Korea must remain competitive in world markets. They warn that the new law will harm both investment and expansion.

South Korean business groups also called for more time to negotiate. They argue that rushing the process undermines workplace stability. They added that a delay would create space for trust-building with unions. This period could reduce risks and avoid sudden disputes. In their view, collaboration must come before strict regulation.

Foreign chambers in Korea also raised their voices. They include American and European business associations. These groups believe the bill could block international companies from investing. However, they argue that stricter labor rules will push investors to other markets. Such concerns highlight the global stakes tied to this law.

Lawmakers in the ruling party remain determined to pass the measure. With their majority, they plan to push for a floor vote. Opposition lawmakers may attempt a filibuster to slow the process. However, they do not have the numbers to block approval. Observers expect the law to move forward despite objections.

In conclusion, the Yellow Envelope bill takes its name from a worker support movement. Citizens once sent donations in yellow envelopes to help laid-off employees. Supporters argue that the law protects vulnerable workers. Critics believe it threatens growth and order. The final outcome will reshape South Korea’s labor and business climate.

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