SEOUL, September 19 (AJP) - The head of the American Chamber of Commerce in Korea urged the South Korean government on Friday to take industry concerns into account as it prepares to implement the so-called Yellow Envelope Act, a contentious new labor law that has become a flashpoint in the country’s corporate sector.
AMCHAM Korea Chairman James Kim said the chamber would soon present policy recommendations to the Ministry of Employment and Labor, which has formed a task force to review how the law should be applied.
Speaking at the chamber's “Executive Roundtable Series” meeting at the Conrad Seoul Hotel in Yeouido, Kim was joined by Kwon Chang-jun, vice minister of employment and labor, along with senior executives from major Korean and multinational companies. The discussion centered on labor regulations and the broader challenges facing South Korea’s economy.
The Yellow Envelope Act, passed by the National Assembly earlier this year, makes it harder for companies to seek damages from striking workers. Labor unions have long argued that South Korea’s corporations have abused damage claims and injunctions to weaken organized labor.
Business groups, however, say the law erodes management rights, undermines legal deterrents against illegal strikes and complicates efforts to keep production running.
At Friday's meeting, executives also called for stronger mediation and arbitration mechanisms to help resolve disputes before they escalate into prolonged strikes.
Kim said, “To position South Korea as a key hub in the Asia-Pacific region, improving the overall business environment is essential, with labor flexibility at its core."
Vice Minister Kwon, for his part, emphasized the importance of cooperation between labor and management, as well as between South Korean and foreign firms, to safeguard the country’s global competitiveness.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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