The ruling party's solo run flooding anti-corporate laws... Business circles say "There is no way to stop it"

Ruling Party's Proposed Bills Mostly Increase Corporate Burdens
Many Government-Initiated Regulations Including Amendments to Commercial Act and Fair Trade Act
Opposition's Checks Virtually Neutralized... Business Community "Worried It Will Pass"

[Asia Economy Reporter Kiho Sung] The headquarters of #A Convenience Store has recently been put on high alert due to the proposed 'Partial Amendment to the Act on Guarantee of Workers' Retirement Benefits.' After news of the bill surfaced, store owners have been flooded with inquiries asking, "Do we have to pay retirement benefits to part-time employees who have worked for just over a month?" The bill includes provisions requiring retirement benefits to be paid even if the employee has worked only one month. Convenience stores, which have a high proportion of part-time workers, could be directly impacted, prompting internal strategy meetings. Especially since the bill was proposed by the ruling party, it is expected to pass, but there are no concrete countermeasures, leaving them in a difficult position.

According to political circles on the 3rd, the ruling party, the Democratic Party of Korea, plans to hold a plenary session on the 4th to pass government-reflected bills unilaterally. Among these bills are controversial ones such as the 'Three Real Estate Tax Laws,' including an increase in the highest comprehensive real estate tax rate, and follow-up bills related to the High-ranking Officials' Crime Investigation Office (HCIO). Although the core of the bills submitted to this plenary session concerns real estate, the business community is worried about the rapid legislative pace of the ruling party and government. If this trend continues, most regulatory bills proposed by the ruling party are likely to pass. Ahead of the September regular session, a series of anti-market and anti-business bills are lined up.

One representative bill is proposed by Democratic Party lawmaker Sujin Lee. The bill mandates the payment of retirement benefits to workers who have worked for more than one month. Under current law, workers with less than 15 hours per week or less than one year of continuous employment can be exempted from retirement benefits. However, this bill allows workers to receive retirement benefits if they have worked for more than one month, regardless of working hours. This will not only impact small business owners but also make it difficult for part-time employees to work for more than a month.

While the legislative intent is good, some bills have potential for abuse. The amendment to the Labor Standards Act proposed by lawmakers Youngseok Seo and Jeongae Han allows workers to request up to 30 days of leave for injuries or illnesses unrelated to work. Companies must compensate 60% of wages during sick leave. A representative from a major corporation said, "We understand the need to allow workers infected with COVID-19 to rest," but pointed out, "However, the bill can also be used for injuries sustained during leisure time such as holidays or vacations."

The Distribution Industry Development Act, which tightens regulations on distribution companies, is a frequent regulatory bill. Since the 21st National Assembly, eight bills have been proposed, six of which were by the ruling party. Examining the bills reveals tightly woven regulations. The bill proposed by Democratic Party lawmaker Jeongho Kim expands the traditional commercial preservation zone, where large stores cannot enter, from 1 km to 20 km from the boundary of traditional markets. This effectively means that large stores like hypermarkets can only open in desolate areas with nothing around.

Democratic Party lawmaker Dongju Lee included regulations on location and operating hours for large stores in his amendment. If passed, existing hypermarkets, department stores, complex shopping malls, and duty-free shops will be subject to mandatory closures and operating hour restrictions. Additionally, they must close on Chuseok and Seollal holidays. Furthermore, there is a bill (by Jeongho Kim) proposing to change the regulatory authority for distribution from the Ministry of Trade, Industry and Energy to the Ministry of SMEs and Startups and to change the establishment of large stores from a registration system to a permit system.

Not only lawmakers but also the government has proposed many regulations. Representative examples are the recently controversial amendments to the Commercial Act and the Fair Trade Act. The recently announced amendment to the Employment Insurance Act includes provisions for special-type workers such as delivery drivers to enroll in employment insurance. The bill also proposes that individual entrepreneurs like insurance planners be enrolled in employment insurance, which clearly increases the burden on companies.

The business community is troubled by the lack of effective countermeasures. A representative from an economic organization said, "We have actively voiced opinions on the recent regulatory bills from the ruling party and government, but no significant changes have been detected," adding, "In the past, we thought some regulatory bills would be difficult to pass, but now the fear that they might pass is even more frightening."

The powerless opposition party is further increasing the business community's anxiety. The main opposition party, the United Future Party, cannot raise its voice against the ruling party's power. Due to insufficient seats, it is difficult to filibuster or request a bill adjustment committee. Since external protests may face public backlash, the prevailing opinion is to focus on parliamentary struggles. An opposition party official said, "Even if we submit regulatory reform bills, if the ruling party resorts to a power struggle, there is no way to respond."

With the opposition's checks effectively neutralized, the ruling party's rapid legislative pace is expected to become even more aggressive. Anti-market and anti-business bills mentioned earlier are lined up for the September regular session, and with the national audit approaching, corporate concerns are growing.