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Lee urges cooperation between big and small businesses as 'survival strategy'

Published: 10 Mar. 2026, 18:51

SARAH KIM
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President Lee Jae Myung, fourth from left, speaks at a meeting with executives from major conglomerates and small- and medium-sized enterprises at the Blue House in central Seoul on March 10. [JOINT PRESS CORPS]

President Lee Jae Myung stressed that cooperation between large and small businesses is an "investment and survival strategy" in a meeting with businesspeople on Tuesday, the first day the pro-labor "Yellow Envelope" act came into force.

"In the past, there was a time when a strategy concentrating resources and opportunities in a specific area to achieve a trickle-down effect was effective," Lee said at the Blue House meeting in central Seoul. "However, the general assessment is that this strategy is now becoming an obstacle to growth and development."

The event was attended by executives of 10 major conglomerates included Samsung Electronics, SK, Hyundai Motor, LG Electronics, Hanwha Ocean and Naver, as well as small- and medium-sized enterprises (SMEs) that serve as their suppliers, signifying a mutually beneficial business model.

"Cooperation between large and small businesses is not a favor, but rather an investment and a survival strategy," Lee said, stressing that the "most important factor for sustainable growth is to create an ecosystem of coexistence."

During the meeting, Lee specifically pointed to Hanwha Ocean, thanking the shipbuilder for setting an example by providing equal performance-based incentives to both regular employees and subcontracted workers.

Lee also mentioned Samsung Electronics' smart factory support project, designed to build on mutual growth with SMEs, calling the model "not only highly effective but also exemplary." The project matches Ministry of SMEs and Startups budget with Samsung Electronics' subsidies.

Hyundai Motor President Jung Jun-cheul, right, seated with Punggang CEO Kim Jin-yong, explains the auto company’s symbiotic cooperation with supplier Punggang at a business event led by President Lee Jae Myung at the Blue House on March 10. [JOINT PRESS CORPS]

The so-called Yellow Envelope act, passed by the National Assembly in August last year, aims to ensure bargaining rights for indirectly employed and subcontracted workers. Despite criticism from both labor unions and businesses, the law took effect Tuesday following a six-month grace period.

Earlier Tuesday, Lee in a Cabinet meeting received a report on the status of preparations and implementation of the law stated and stressed that the "government must be a model employer," according to Blue House spokesperson Kang Yu-jung.

Lee also urged relevant ministries to carefully monitor the implementation of the Yellow Envelope act to prevent any violations of the law.

Kang said Lee's message indicated that the government should "establish guidelines for appropriate wages, set an example and adhere to the guidelines."

On the same day, Lee in a video message marking the 80th anniversary of the Federation of Korean Trade Unions, one of the country's two major umbrella labor groups, stressed that his government will work to "protect the rights of workers and place social dialogue at the center of state governance."

"I hope this will be the starting point for subcontracted workers to negotiate directly with their primary contractors, resolving common issues through dialogue and compromise rather than confrontation and conflict," Lee said.

"We will strongly protect the rights of workers and place social dialogue at the center of state governance," he added, adding that his government will "mobilize resources so that more workers can join labor unions and more broadly enjoy their labor rights."

BY SARAH KIM [[email protected]]