AMCHAM Expresses Strong Concerns over “Yellow Envelop Bill” and Supports the

Position of Six Major Korean Economic Organizations 

July 25, 2024 - The American Chamber of Commerce in Korea (AMCHAM; Chairman and CEO James Kim) expresses strong concerns regarding the recent passage of the so-called “Yellow Envelope Bill” by the National Assembly’s Environment and Labor Committee. The bill aims to limit companies from making claims for damages against legitimate labor union disputes.

AMCHAM Korea is deeply concerned about the bill’s potential negative impact on the business environment and economic stability in Korea. By restricting companies' ability to seek damages in unlawful strikes, the legislation could inadvertently encourage more frequent and disruptive labor actions. Businesses, both domestic and foreign, require a stable and predictable operating environment to thrive and make long-term investments.

The passage of this bill can have far-reaching implications for Korea’s attractiveness as an investment destination. Foreign investors seek stability and transparency in the legal and regulatory frameworks of the countries in which they operate. This bill creates uncertainty and could deter investment, ultimately weakening Korea’s global competitiveness.

AMCHAM Chairman & CEO James Kim said, “AMCHAM fully supports the position outlined in the joint statement released earlier this month by the six major Korean economic groups, including the Korea Chamber of Commerce and Industry (KCCI), Korea Enterprises Federation (KEF), the Federation of Korean Industries (FKI), the Korea International Trade Association (KITA), the Korea Federation of SMEs (KBIZ) and the Federation of Middle Market Enterprises of Korea (FOMEK).”

He continued, “At AMCHAM, we are concerned about the implications of the “Yellow Envelope Bill” on Korea’s business landscape. As highlighted in our 2024 Business Survey, the unpredictable regulatory environment and unique regulations in Korea are already significant challenges for the foreign business community. The recent passage of this bill only exacerbates these concerns by introducing uncertainty that could deter investment and undermine Korea’s global standing as a competitive business hub.”

He added, “AMCHAM urges the National Assembly to reconsider this legislation and pursue a more balanced and fair approach that protects the rights of both workers and businesses. While it is essential to uphold the rights of workers to organize and protest, it is equally critical to ensure that businesses have the necessary tools to protect their interests and maintain operational efficiency.”

AMCHAM remains committed to engaging in constructive dialogue with all stakeholders, including the government, labor unions, and the business community, to develop policies that support economic stability and growth. AMCHAM advocates for solutions that ensure fair treatment for all parties and promote a balanced and productive relationship between labor and management.

As Korea moves forward, it is crucial that legislation supports a balanced and stable economic environment. The “Yellow Envelope Bill” in its current form does not achieve this balance and poses significant risks to the foreign business community. AMCHAM will continue to advocate for policies that foster economic growth and ensure a fair and predictable business environment. 

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