Download
'Yellow
Envelope Bill' could weaken Korea's appeal to foreign companies, AMCHAM head
says
By
PAIK JI-HWAN, Korea JoongAng Daily - The American Chamber of Commerce in Korea
(Amcham) voiced strong opposition Wednesday to a proposed labor bill that would
limit companies’ ability to seek damages from workers or unions over
strike-related losses.
AMCHAM joined eight major Korean business groups in criticizing the so-called
Yellow Envelope Bill, warning that the legislation could weaken Korea’s appeal
as a business hub.
“A
flexible labor environment is essential to strengthening Korea’s
competitiveness as a business hub in the Asia-Pacific region,” said James Kim,
chairman and CEO of AMCHAM. “If enacted in its current form, this legislation
could influence future investment decisions by American companies considering
Korea.
“The
2025 APEC summit presents a valuable opportunity for Korea to demonstrate
leadership in innovation and economic policy. At this critical juncture, it is
important to consider the broader message this legislation may send to the
global business community.”
AMCHAM also pointed out that the bill has moved forward without sufficient input from
industrial stakeholders.
“According
to AMCHAM’s 2024 Business Environment Survey, regulatory unpredictability
remains one of the top challenges for foreign-invested companies in Korea,” Kim
said. “This legislation may add to that uncertainty and, in turn, undermine
Korea’s global competitiveness.”
AMCHAM’s
position on the bill follows after the European Chamber of Commerce in Korea
(ECCK) also criticized the act on Monday. The ECCK warned that the bill could
“treat business operators as potential criminals” and raise legal exposure for
foreign-invested companies operating in Korea.
