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DP to push ahead with controversial labor bill despite Amcham opposition

Published: 19 Aug. 2025, 16:46 Updated: 19 Aug. 2025, 20:43

American Chamber of Commerce in Korea Chairman and CEO James Kim, left, speaks at a meeting with Democratic Party floor leader Kim Byung-kee at the National Assembly in western Seoul on Aug. 19. [JOONGANG ILBO]

The Democratic Party (DP) on Tuesday reaffirmed its plan to push ahead with a controversial labor bill despite opposition from the American Chamber of Commerce in Korea (Amcham), which warned that the legislation could hurt Korea’s standing as a regional hub for global businesses.

Heo Young, the DP’s floor policy coordinator, said Tuesday that the party has no intention of revising the legislation, known as the Yellow Envelope Bill, after a 34-minute, closed-door meeting with Amcham officials at the National Assembly in western Seoul.

“We cannot revise the bill,” Heo said. “We plan to proceed according to the legislative process, based on the version already submitted to the plenary session.”

His comments came after Amcham Chairman James Kim expressed concern that the bill could negatively influence future investment decisions by American companies considering Korea.

The Yellow Envelope Bill seeks to broaden the legal definition of an employer, expand union and collective bargaining rights and limit the scope of damage claims that companies can file against striking unions. Despite objections from the opposition People Power Party and business groups, the DP plans to use its legislative majority to pass the bill during a plenary session as early as Thursday.

The National Assembly building in western Seoul [NATIONAL ASSEMBLY]

At the start of Tuesday's meeting, DP floor leader Kim Byung-kee told Amcham officials that "companies need predictable policy and transparent regulation.”

“Reforming unreasonable regulations is a firm commitment shared by both the government and the Democratic Party,” Kim said.

During the closed-door session, Amcham officials reportedly acknowledged that the bill is likely to pass and did not focus on opposing the legislation itself.

"Instead, they asked the DP to clearly communicate to investors and companies that the bill’s passage would not significantly damage Korea’s business environment," Heo said. "Since Amcham expects that the bill would pass, it believes the message the DP sends after the bill passes will be crucial in reassuring its member companies.

"Amcham rather expressed optimism about regulatory reform proposals released by President Lee Jae Myung's Presidential Committee on Policy Planning. Floor leader Kim also asked Amcham and business groups like the Korea Enterprises Federation to offer more specific input on possible revisions to criminal law related to breach of trust."

DP floor leader Kim noted that President Lee has indicated the need to review laws concerning economic crimes following the revision of the Commercial Act.

"The DP will form a separate task force to conduct a comprehensive review," he said.

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.
BY HA JUN-HO [[email protected]]