French business group calls for predictability as 'Yellow Envelope' law looms
Published: 25 Feb. 2026, 18:05
Updated: 25 Feb. 2026, 18:47
-
- SEO JI-EUN
- [email protected]
![Participants of "Team France Korea" pose for a commemorative photo during a press briefing on a study regarding France’s economic footprint in Korea, marking the 140th anniversary of diplomatic ties between the two nations, held at the French Embassy in western Seoul on Feb. 25. [SEO JI-EUN]](https://koreaseafood.online/data/photo/2026/02/25/ed925e87-945a-4a02-b7e7-8bf26025ebbf.jpg)
Participants of "Team France Korea" pose for a commemorative photo during a press briefing on a study regarding France’s economic footprint in Korea, marking the 140th anniversary of diplomatic ties between the two nations, held at the French Embassy in western Seoul on Feb. 25. [SEO JI-EUN]
French business leaders in Korea have formally submitted recommendations to the government regarding the impending “Yellow Envelope" pro-labor law, citing legal uncertainty and rigid labor relations as the most significant barrier to foreign investment.
"Team France Korea," a joint platform comprising the French Embassy’s economic section, Business France, the French-Korean Chamber of Commerce and Industry (FKCCI) and French Foreign Trade Advisors (CCEF), unveiled a comprehensive study on France’s economic footprint in Korea during a press conference in Seoul on Wednesday.
David-Pierre Jalicon, president of the FKCCI, said the chamber formed a task force with four other major foreign chambers — in which officials from the Ministry of Employment and Labor also participate — and submitted a formal recommendation to Korea's Labor Ministry and Ministry of Trade, Industry and Resources.
"In France, too, many efforts have also been made regarding labor laws before and after President Emmanuel Macron's administration," Jalicon said.
"However, we have seen new laws being implemented too often and too abruptly," he added. "Companies need time to consult with their headquarters in Paris. It is crucial for corporate predictability to establish a transition period whenever a new law is introduced."
![Members of the Korean Confederation of Trade Unions applaud at the National Assembly in western Seoul on Aug. 24, 2025, after the "Yellow Envelope" law was passed with 183 votes in favor out of 186 lawmakers present. [KIM SEONG-RYONG]](https://koreaseafood.online/data/photo/2026/02/25/7e916568-eb52-49d4-bbcc-f26f43830964.jpg)
Members of the Korean Confederation of Trade Unions applaud at the National Assembly in western Seoul on Aug. 24, 2025, after the "Yellow Envelope" law was passed with 183 votes in favor out of 186 lawmakers present. [KIM SEONG-RYONG]
The revision to Korea’s Trade Union and Labor Relations Adjustment Act, commonly nicknamed the yellow envelope law, expands the definition of "employer" to include subcontractors and restricts damages claims against striking workers. It is set to take effect on March 10.
This follows a similar warning from the American Chamber of Commerce in Korea in July of last year, which expressed deep concern over the law’s "negative impact" on Korea’s business environment and investment attractiveness. Similarly, the European Chamber of Commerce in Korea cautioned that European firms currently operating in the country could ultimately "withdraw from the Korean market."
Jalicon noted that in a meeting with President Lee Jae Myung a month ago, Lee acknowledged that Korea is a "highly regulated market" and expressed a desire to make the environment more business-friendly.
"There is a frequent desire to conduct business with more flexibility in a social context rather than based purely on legal principles," said Philippe Li, honorary president of the CCEF in Korea and vice president of the FKCCI. "When lawsuits or conflicts arise in labor relations, [the subsequent resolution process] has a profound impact on corporate management."
![David-Pierre Jalicon, president of the French-Korean Chamber of Commerce and Industry, speaks during a press conference held at the French Embassy in western Seoul on Feb. 25. [SEO JI-EUN]](https://koreaseafood.online/data/photo/2026/02/25/e5db284d-4a80-412f-a943-5a8cf5849c13.jpg)
David-Pierre Jalicon, president of the French-Korean Chamber of Commerce and Industry, speaks during a press conference held at the French Embassy in western Seoul on Feb. 25. [SEO JI-EUN]
The conference also addressed the "frenemy" relationship in the nuclear sector.
While France was a foundational partner for Korea in the 1980s, the French state-owned utility EDF is currently challenging the selection of Korea Hydro & Nuclear Power as the preferred bidder for the Czech Republic’s Dukovany nuclear power project.
Marlène Marques Lopes, head of the French Embassy’s economic service, said the matter remains under review at the European Union level and that no final decision has been made, while acknowledging that Korea had prevailed in the tender process.
She highlighted a two-track approach, with a legal process running in parallel to industrial cooperation in high-value areas such as uranium supply and carbon transition fields.
The French business community pushed back against criticism that French luxury and beauty brands — a sector where France is also Korea’s top supplier in imports by category — contribute little to local charities despite massive profits.
"By facilitating greater access for women to the work force, these companies contribute significantly to the values highlighted in this study," said Nicolas Moutin, president of the CCEF committee. "In this sense, the luxury sector is a major driver in enhancing the CSR [Corporate Social Responsibility] strategies of French firms in Korea."
Jalicon added that the luxury industry invests heavily in dedicated projects and structural developments that are highly valued by Koreans.
"We see flagship stores and boutiques in Korea that […] contribute to Korea's overall attractiveness," he said. "These investments draw visitors who visit specifically to experience [them] and ultimately the attractiveness of the Korean market is rooted in the depth of the corporate presence established here."
BY SEO JI-EUN [[email protected]]
with the Korea JoongAng Daily
To write comments, please log in to one of the accounts.
Standards Board Policy (0/250자)