South Korea expands the scope of worker protection through new labor union regulations

The South Korean parliament passed a new labor union law on Sunday, expanding protection for subcontracted workers. Despite concerns from businesses that this may weaken competitiveness and worsen labor-management relations, the parliament has pushed forward with the legislation. Since liberal President Moon Jae-in took office in June, his ruling party, the Democratic Party of Korea, has been pushing for revisions to the labor union law to provide more support to workers. This move reverses the stance of the previous conservative government led by President Park Geun-hye, which took a hardline approach towards labor unions and vetoed the bill. President Moon has expressed support for the bill and is expected to sign it into law. Currently, he is on a diplomatic trip to Japan and the United States. The revised "Labor Union and Labor-Management Relations Adjustment Act" allows unions in subcontracting companies to directly make demands to client companies, limits the rights of employers to claim damages related to strikes, and expands the responsibilities of corporate executives who do not participate in collective bargaining. The lawmakers pushing for the bill have called it the "Yellow Envelope Bill," referencing the envelopes used by supporters to send financial assistance to union workers facing legal compensation due to strikes. The bill was passed by the parliament early Sunday morning. The conservative opposition party had delayed the vote all night, criticizing the bill for potentially hindering business development in the fourth largest economy in Asia. Some business groups are concerned that this measure may harm South Korea's investment environment.