Feedback Following the September Meeting Between the Korea Federation of SMEs and the Democratic Party
The Korea Federation of SMEs requested the Democratic Party of Korea to revise the Yellow Envelope Act (the amendment to Articles 2 and 3 of the Trade Union Act) to guarantee employers’ right of defense and to supplement the amendment to the Commercial Act, which includes measures to protect management rights. However, the Democratic Party stated that it would be difficult to accept these requests as before.
According to the National Assembly on October 16, the Democratic Party has responded to the Korea Federation of SMEs regarding whether it would accept the proposed issues. A key official from the Democratic Party said, “We sent the party’s finalized response on either the 1st or 2nd of this month, following our meeting with the Korea Federation of SMEs last month.”
Previously, on September 4, Democratic Party officials including Party Leader Jung Chungrae, Policy Committee Chairperson Han Jeongae, and Special Committee on SMEs Chairperson Kwon Chilsung, held a meeting with the Korea Federation of SMEs to listen to the difficulties faced by small and medium-sized enterprises. At that time, Chairperson Han and Chairperson Kwon stated that they would inform the federation of the party’s decision on the proposals within September through further discussions.
The Korea Federation of SMEs requested improvements to the Yellow Envelope Act, but the Democratic Party maintained its previous stance in its response. The federation had called for clear standards to be established in guidelines and manuals regarding the Yellow Envelope Act, and also requested that employers’ right of defense be guaranteed through legislative amendments. However, the Democratic Party responded that while it would urge the establishment of clear standards, it recommends that the guarantee of employers’ right of defense be achieved through social dialogue and consensus.
There was also no change in the Democratic Party’s position regarding the amendment to the Commercial Act. While the party acknowledged the need to clarify the business judgment rule, as proposed by the Korea Federation of SMEs, it did not accept the introduction of dual-class shares, poison pill measures, or the exclusion of existing treasury shares when canceling treasury shares.
Meanwhile, the Korea Federation of SMEs requested improvements to the supply price indexation system, which was already adopted as a key legislative priority for the Democratic Party this year. The main point is to gradually include energy costs, water charges, and transportation costs as indexation items if they account for more than 10% of the supply price. A key party official stated, “There will likely be a process to finalize the bill after the National Assembly audit.”
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