Sohn Kyung-shik, chairman of the Korea Enterprises Federation (KEF), expressed concern that Articles 2 and 3 of the Trade Union Act, known as the "Yellow Envelope Act," along with the Serious Accidents Punishment Act, could create confusion at industrial sites.
Sohn made the remarks at the "First 2026 ESG Management Committee" meeting held at the Press Center in Jung-gu, Seoul, on Thursday.
Vice Minister of Employment and Labor Kwon Chang-jun attended the committee meeting, marking the first time the Ministry of Employment and Labor has participated since the committee was launched in April 2021.
In his opening address, Sohn said, "Major economies, including the European Union, have continued to introduce ESG-related regulations while showing flexibility in adjusting the pace and scope in consideration of corporate burdens and industrial competitiveness." He added, "We need to seek rational and predictable policy implementation from a thorough national-interest perspective."
"Regarding the Trade Union Act, there are considerable concerns that issues such as recognizing the employer status of prime contractors and the scope of collective bargaining could undermine the stability of labor-management relations and cause confusion at industrial sites," Sohn said. "For the Serious Accidents Punishment Act as well, concerns continue at worksites that the scope of application and standards of responsibility remain unclear."
Sohn further noted, "In ESG management, protecting workers and ensuring industrial safety are important values that companies must practice." He added, "However, no matter how good the intent of a regulation is, investment and employment will inevitably shrink unless field acceptability, international consistency, and predictability regarding legal risks are secured."
At the meeting, ESG Management Committee members shared field difficulties related to Articles 2 and 3 of the Trade Union Act and the Serious Accidents Punishment Act. They argued that hidden conflicting elements throughout current laws and regulations need to be identified and adjusted to encourage companies to expand voluntary ESG management.
Vice Minister Kwon said, "It is important to resolve labor-management conflicts through dialogue rather than escalating them into confrontation." He added, "As the implementation of the revised Trade Union Act has institutionalized dialogue, we will actively cooperate so that a mutually beneficial labor-management relationship, where solutions are found together, can take root."
The ESG Management Committee, chaired by Sohn, is the highest-level ESG consultative body, with 19 presidents from major groups, including Korea's top 10 conglomerates, serving as members.
