DR & AJU Public Sector Relations Group's latest issue of its specialized legislative journal, the Policy & Business Report, is now available in digital format.
The Lee administration has taken office, promoting a policy line of “pragmatic market liberalism.” While expectations are rising for a national economic takeoff, concerns remain over its “labor-friendly policies.”
Lee Jae-myung of the Democratic Party of Korea has been elected as South Korea’s 21st president. The business community is expressing hopes that his administration will reignite the country’s growth engine and drive an economic rebound. At the same time, concerns are emerging that the administration's labor-friendly policies could significantly reshape the corporate landscape and increase management burdens.
During his presidential campaign, President Lee expressed a strong commitment to fostering advanced industries, raising expectations among leading domestic companies. He pledged to invest KRW 100 trillion in the AI sector, aiming to position South Korea among the world’s top three AI powers. For the semiconductor industry, a key pillar of the Korean economy, he also promised support for building a comprehensive ecosystem hub.
Just nine days after taking office, President Lee convened business leaders and heads of major economic organizations to discuss measures to revive the national economy. At the meeting, he pledged proactive government support while emphasizing the importance of fostering a fair and balanced economic ecosystem.
Meanwhile, some concerns have been raised over the Lee administration’s labor-friendly policy stance and the possibility of stricter regulations. As President Lee promoted a range of pro-labor pledges during his presidential campaign, tensions are emerging over potential shifts in the corporate management landscape.
In particular, the so-called “Yellow Envelope Act”, a proposed amendment to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act, which former President Yoon Suk-yeol vetoed, is now expected to move forward swiftly. The bill seeks to expand the definition of “employer,” strengthen the responsibility of prime contractors for subcontracted workers, and limit the scope of damage claims arising from industrial action such as strikes.
The amendment bill to the Commercial Act, which would expand the scope of corporate directors’ duty of fidelity to include shareholders, is also expected to pass. However, the business community has expressed concerns that the bill may fall short of achieving its stated goal of enhancing shareholder value, while posing significant side effects for corporate management, such as discouraging investment in emerging industries and increasing the risk of activist funds challenging managerial control.
Economic organizations have called on the Lee administration to “resolutely reform various regulations that hinder corporate growth and establish a flexible labor market and stable labor-management relations.” They stated that a collective effort by the government, the public, and the business sector is essential for the Korean economy to take off, and that the business community will also do its part by doing its utmost to expand investment and employment.
As the first-ever Korean law firm to issue specialized legislative journals, DR & AJU Public Sector Relations Group has been publishing the monthly Policy & Business Report since August 2019. The May-June 2025 issue of the P&B Report conducted a full inspection of legislation proposed to the National Assembly Subcommittee, Standing Committee, and Plenary Session from the opening of the 22nd National Assembly on April 15, 2025, to June 14, 2025, and selected and analyzed legislation with 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 Public Sector Relations Group provides P&B Report subscription services. Please contact us at Ic@draju.com for further inquiries.
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