For business and labor to truly become “two wings”

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For business and labor to truly become “two wings”

Published: 03 Sep. 2025, 00:00

Audio report: written by reporters, read by AI

President Lee Jae Myung speaks during a Cabinet meeting at the presidential office in Yongsan on Sept. 2. [YONHAP]

President Lee Jae Myung said during a Cabinet meeting on Tuesday that “a bird flies with two wings. Both business and labor are important,” cautioning against “killing the cow to straighten the horn,” an ancient proverb for sacrificing the greater good for minor corrections. His remarks were widely seen as a response to ongoing debates over the commercial law revision and the "Yellow Envelope Bill".

Lee said the purpose of both laws is to improve transparency in corporate governance and encourage labor-management cooperation, which would in turn strengthen the national economy. The principle is sound, but conditions on the ground tell a more complicated story.

Although the Yellow Envelope Bill provides a six-month grace period before enforcement, labor unions are already mobilizing. Subcontractor unions at Hyundai Steel and seven Naver affiliates have begun demanding direct negotiations. Labor groups at HD Hyundai have launched joint action opposing a merger in the "Make American Shipbuilding Great Again" project of Korea-U.S. shipbuilding cooperation, an unusual intervention in managerial decision-making. Financial and construction unions are also stirring. Petrochemical companies facing restructuring have even warned investors in filings that the new law could trigger more strikes. Yang Hee-dong, president of the Korean Academic Society of Business Administration, went so far as to call for delaying the law's enforcement until after 2027, when shifts in U.S. tariff policy are expected.

In this climate, Labor Minister Kim Young-hoon, a former head of the Korean Confederation of Trade Unions, changed the ministry’s official abbreviation from “Employment Ministry” to “Labor Ministry.” He framed the change as a way to emphasize the value of labor and policies for all workers. Business circles, however, saw it as reinforcing the administration’s pro-union tilt, prioritizing labor rights over job creation.

Korean corporations, meanwhile, played a prominent role at Lee’s first summit with U.S. President Donald Trump. They pledged $150 billion in investments and quietly supported negotiations through their local networks. Yet at home, they face a double blow from the commercial law revision and the Yellow Envelope Bill.

Lee spoke of mutual respect among labor, management, and market participants. The principle of cooperation deserves recognition. But what is needed now is balance in a tilted landscape. For business and labor to function as “two wings,” companies must also have defenses. Granting unions new legal tools without corresponding safeguards — such as banning workplace occupations or allowing replacement workers — creates asymmetry. Lee must also send a clearer signal to the Democratic Party to restrain legislation that caters to hardline supporters.

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.