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KEF chair writes to each lawmaker urging them to shelve 'Yellow Envelope Bill'

Published: 12 Aug. 2025, 16:51 Updated: 12 Aug. 2025, 19:15

Korea Enterprises Federation (KEF) chairman Sohn Kyung-shik holds a press conference to express his concerns over the proposed revisions to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act, also known as the Yellow Envelope Bill, at the KEF office in Mapo District, western Seoul, on July 31. [NEWS1]

The Korea Enterprises Federation (KEF) chairman, Sohn Kyung-shik, sent letters to all 298 lawmakers of the National Assembly to convey the business community’s concerns over the proposed revisions to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act, also known as the Yellow Envelope Bill.

“Should the bill be passed, strikes targeting original contractor companies will become routine, leading to the collapse of the industrial ecosystem between contractors and subcontractors,” Sohn said, pleading for the legislation to be halted.

The Yellow Envelope Bill, which the Democratic Party plans to put to a vote in a plenary session on Aug. 21, aims to expand the definition of “employer” and the scope of “industrial disputes” in Article 2, and ban companies from claiming damages for losses caused by union activities — stated as “industrial action" — in Article 3.

“The revisions would draw original contractors into subcontractors’ labor talks and make even business management decisions a target of labor disputes,” Sohn said. “If restructuring or investment in overseas production facilities becomes subject to strikes, companies will struggle to operate normally in global competition.”

He claimed that “employers in Korea have almost no defensive rights against union strikes,” taking the examples of companies' inability to allow replacement labor or ban labor unions from occupying business sites.

Sohn also relayed concerns from foreign business groups in Korea.

In an earlier statement, the European Chamber of Commerce in Korea said the legislation could “treat business operators as potential criminals” and speculated that some European companies could consider pulling out of the Korean market if it were to pass. The American Chamber of Commerce in Korea (Amcham) also warned that “If enacted in its current form, this legislation could influence future investment decisions by American companies considering Korea.” Amcham also referenced the APEC summit to be held in Gyeongju in late October, noting that Korea needs “to consider the broader message this legislation may send to the global business community.”

“Even now, I earnestly ask you to halt the revision of the trade union act for the stability of labor relations and the national economy, and to find a way to guarantee workers’ labor rights while enabling our companies to remain competitive through sufficient labor-management consultations,” Sohn said in his letter.

This is the third year in a row Sohn has sent such letters about the Yellow Envelope Bill, following similar efforts in 2023 and 2024. On July 31, he also held his first solo press conference since becoming chairman in 2018, insisting that “the National Assembly should stop revising the trade union act and engage in social dialogue.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom staff.
BY KIM SU-MIN [[email protected]]