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The final regular session of the 21st National Assembly kicks off with heightened tension and expected conflict as the opposition party pushes to pass the “Yellow Envelope Act.” The ruling party has shown staunch resistance and signaled their intent to launch a filibuster.
Amidst the commencement of the final regular session of the 21st National Assembly, a 100-day parliamentary session that began on September 1st, concerns about a potential vicious circle are materializing, where bills that directly impact people’s daily lives are neglected due to political confrontations between the two major parties.
The Democratic Party of Korea (DP) intends to push to pass the “Yellow Envelope Bill” (the amendment to Article 2 of the Trade Union and Labor Relations Adjustment Act) and an amendment bill for the three broadcasting laws (Broadcasting Act, Broadcasting Culture Promotion Association Act, and Educational Broadcasting System Act), with a focus on altering the governance of the Korean Broadcasting System. In response, the People Power Party (PPP) has preannounced a filibuster (a lawful tactic that uses the right to unlimited debate to block a vote), setting the stage for a significant clash between the two parties.
Meanwhile, as the DP stands firm in its stance to push for these bills, the Korea Enterprises Federation has expressed its concerns regarding the Yellow Envelope Bill to all 298 members of the National Assembly. Kyung Shik SOHN, the head of the Korea Enterprises federation, emphasized in the announcement that “blocking employers, who are the victims, from pursuing claims for damages can result in disruptions at industrial sites.” He also stressed that “the amendment to the Trade Union and Labor Relations Adjustment Act could disrupt the ecosystem of manufacturing businesses, which form the foundation of the economy, that could ultimately jeopardize jobs for the next generation.”
However, the International Trade Union Confederation (ITUC) has urged the National Assembly to pass the Yellow Envelope Bill. On September 20, the ITUC held a press conference at the National Assembly, stating, “The Yellow Envelope Bill represents the first step in the Korean government’s implementation of the ILO agreement.” They further emphasized, “The global community is closely watching whether the Korean government will uphold its commitments to the international community.” The ITUC also directed its concerns towards the Office of the President. Previously, the Office of the President had indicated that they “will veto” the bill if it passes the National Assembly. The ITUC warned, “If the president exercises his veto, the global community will view it as a concerning signal that the Republic of Korea may renege on the commitments it has made.”
Among these circumstances, the Yellow Envelope Bill was not included in the agenda for the Plenary session of the National Assembly held on September 21. According to political insiders, it appears that the opposition party had considered submitting a motion to alter the agenda to present the Yellow Envelope Bill to the plenary session after the bill had been brought up for the plenary session discussions of the National Assembly at 21 September. However, this plan was derailed as the National Assembly approved the motion for the arrest of Jae Myeong LEE, the head of the DP.
The next National Assembly plenary session is scheduled for November 9. If the DP elects a new party leader before the Chuseok holidays, there is a possibility that an additional plenary session will be held in early October, where the inspection of state administration is scheduled. However, it is mostly expected that the chances are slim for this to happen.
The primary focus of the controversial Yellow Envelope Bill, is the restriction of corporations from seeking compensation for damages against trade unions. It also empowers subcontractors to negotiate and engage in industrial actions against their contractors.
The ruling party and the government are concerned that the bill will have adverse economic consequences, potentially igniting unlawful strikes and lead to reduced investment and employment. Furthermore, they argue that the bill may condone unlawful trade union activities, as it would make it more difficult for employers who suffer losses from strikes to seek compensation.
As the first-ever Korean law firm to issue specialized legislative journals, DR & AJU LLC has been publishing the monthly Policy & Business Report since August 2019. The September 2023 issue of the P&B Report conducted a full inspection of legislation proposed to the National Assembly Subcommittee, Standing Committee, and Plenary Session from August 15, 2023, to September 14, 2023, and selected and analyzed legislation with a significant impact on corporate activities. In the case of major legislation, key mentions of legislators, members of the Standing Committee, and government officials are included.
*DR & AJU Legislation & Government Relations Consulting Center provides P&B Report subscription service. Please contact us at Ic@draju.com for further inquiries.
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