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KEF makes proposals to National Assembly, including revising Yellow Envelope Bill

Published: 04 Nov. 2025, 19:24

President Lee Jae Myung leaves the main assembly hall after giving his speech at the National Assembly in western Seoul on Nov. 4. [JOINT PRESS CORPS]

The Korea Enterprises Federation (KEF) has submitted a set of 20 legislative proposals to the National Assembly aimed at revitalizing the economy and strengthening corporate competitiveness as the regular parliamentary session nears its end.

The proposals were divided into three categories: bills that need to be introduced quickly, those that should be passed promptly and those that are pending and require careful review, the federation said Tuesday.

Among its priorities, the KEF urged lawmakers to clarify the definition of “employer” under the so-called Yellow Envelope Bill — the labor-focused revision to the Trade Union and Labor Relations Adjustment Act — which is set to take effect in March next year. The group proposed specifying the term employer as “a person with decision-making authority comparable to that of the direct employer in determining working conditions.” The current law, which includes “those who can substantially and specifically control or determine workers’ working conditions,” has been criticized for being overly vague.

The KEF argued that the ambiguity has led subcontractor unions to indiscriminately demand collective bargaining with parent companies, saying that a clearer legal definition is needed to prevent confusion in the field. The federation also called for reforms to the unfair labor practice system, simplification of procedures for revising employment rules to restructure wage systems and the enactment of an industrial accident prevention support law.

For pending bills, the KEF called for amendments to the Labor Union Act to prohibit workplace occupations and allow replacement work during strikes, as a counterbalance to the Yellow Envelope Bill. “Major advanced economies such as the United States, Britain, Germany and France do not permit sit-in strikes that occupy workplaces,” the KEF said, arguing that “Korea should also ban such occupations entirely and recognize the right to continue essential operations during strikes through replacement labor.”

The federation also urged the swift passage of reforms to expand flexible working arrangements and amend the Criminal Act’s provisions on breach of trust. It stressed that the current rigid working hour system hinders corporate adaptability, and proposed a “white exemption” allowing flexible overtime management for research and development workers and high-income professionals. It also argued that recent amendments to the Commercial Act have increased management burdens, calling for the introduction of measures such as “poison pills” — otherwise known as the shareholders rights plans — to protect corporate control.

Among bills that require cautious consideration, the KEF pointed to proposals to raise the mandatory retirement age from 60 to 65, which are currently being pushed by ruling party lawmakers. The federation warned that such a change could deepen generational conflicts and labor market duality, suggesting instead the creation of a separate law promoting the reemployment of older workers. It also urged careful review of a third amendment to the Commercial Act that would require companies to cancel treasury shares.

“The National Assembly should listen more closely to what businesses truly need in an environment of rapid economic change,” said Lee Dong-geun, executive vice chairman of the KEF.

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 NA SANG-HYEON [[email protected]]