Democratic Party moves forward with controversial legislation

President Lee Jae-myung said on Aug. 19 during a meeting with business leaders at the South Korea-U.S. summit that “the government’s top priority is to revive the economy and lay the foundation for sustainable growth.” “There are areas that must be brought in line with advanced standards,” he added, expressing support for the ruling party’s plan to pass the Yellow Envelope Act, a revision to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act, and amendments to the Commercial Act without changes. Critics argue that while Lee’s administration emphasizes pro-business policies, it is instead adding burdens on companies already struggling with sluggish exports due to tariffs and weakening domestic demand.

At the presidential office in Yongsan on Aug. 19, Lee met with business leaders at the South Korea-U.S. summit. Lee said, “In the case of the Commercial Act and the Yellow Envelope Act, some areas must be brought in line with advanced standards, and certain principles in labor and corporate law must be upheld at a global level.” Presidential Chief of Staff Kang Hoon-sik added, “I do not believe avoiding or delaying the two bills is a solution.” He noted, “I understand companies are also beginning to accept parts of them,” which effectively signals support for passing the legislation.

The Democratic Party on Aug. 19 reaffirmed its plan to pass the bills without revision, despite objections from the American Chamber of Commerce in Korea and similar concerns raised by Korean business groups the previous day. “The passage of the Yellow Envelope Act in the National Assembly could hurt Korea’s status as a regional hub in Asia,” James Kim, chairman of AmCham, told Democratic Party Floor Leader Kim Byung-ki. “It has raised significant concerns among U.S. companies.”

In response, Floor Leader Kim said, “Eliminating unreasonable regulations is the firm commitment of the government and the Democratic Party.” Heo Young, the party’s chief policymaker who also attended the meeting, told reporters, “Chairman Kim expressed concern that costs could rise significantly.” He added, “The Yellow Envelope Act cannot be revised. It will move forward as submitted to the plenary session.”

The ruling and opposition parties agreed on Aug. 19 to hold plenary sessions of the National Assembly as scheduled to start on Aug. 21, with a break on Aug. 22 for the People Power Party convention. The Broadcasting Act and the Korea Educational Broadcasting System Act will be passed by the morning of Aug. 22. The Yellow Envelope Act will be introduced at the plenary session on Aug. 23, followed by a filibuster before a vote on Aug. 24. Amendments to the Commercial Act will be introduced on Aug. 24 and voted on Aug. 25.


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