Chief of Staff Kang Hoonshik: "Yellow Envelope Act Is the Path Forward, Additional Bond Issuance Is the Predetermined Answer"

Kang Hoonshik Stresses the Yellow Envelope Act Is “the Path Forward”
Signals Commitment to Additional Bond Issuance for Economic Stimulus
Emphasizes Responsible Implementation of Labor Law Amendments
Hints at Real Estate Supply Measures for

Kang Hoonshik, Chief of Staff to the President, is speaking at a press briefing held on the 19th at the Yongsan Presidential Office building in Seoul. Photo by Yonhap News

On August 19, Kang Hoonshik, Chief of Staff to the President, emphasized that the Yellow Envelope Act (the amendment to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act) is "the path we must take." Regarding fiscal stimulus for economic recovery, he expressed his willingness to issue additional government bonds, calling it "the predetermined answer."

At a press briefing held at the Yongsan Presidential Office on this day, Chief of Staff Kang made these remarks in response to a question about President Lee Jaemyung's views on the Yellow Envelope Act. Kang stated, "We must responsibly pursue the legislative intent so that it is reflected in reality, as it aims to promote dialogue in the industrial field and bridge gaps." He added, "I do not think there is any answer in avoiding or delaying this."

Chief of Staff Kang further reiterated, "We must follow the proper procedures," and said, "In fact, I believe companies are gradually coming to accept parts of this."

The amendment to Articles 2 and 3 of the Trade Union Act aims to expand the definition of employer, thereby strengthening the responsibility of primary contractors for subcontracted workers, and to limit the scope of damages claims against unions and workers. In particular, as the amendment would allow subcontracted workers to negotiate directly with primary contractors, the business community believes this could lead to an excessive increase in labor disputes. Although business organizations have expressed concerns, Chief of Staff Kang has indicated that the amendment should be processed without modification or delay.

In response to a question about the possibility of issuing additional government bonds for economic stimulus, he replied, "It is the predetermined answer." While Chief of Staff Kang said, "I do not believe that fiscal policy alone can revive the economy," he also remarked, "We all recognize that it is not possible to revive the economy without fiscal support." He added, "With what money could we increase fiscal spending? If there were a way to do it without incurring debt, we would also want to do that."

However, regarding the possibility of a third supplementary budget, he stated firmly, "There has been no discussion at all."

Regarding real estate policy, he announced plans for supply measures. Chief of Staff Kang analyzed, "It is true that since the June 27 loan regulation, the volatility in real estate prices has decreased and transaction volume has dropped significantly," but also noted, "It is also true that there are signs of an upward trend." He declared, "We plan to announce supply measures to ensure the market can be managed stably."