David Pierre Jalicon, chairman of the French Korean Chamber of Commerce and Industry (FKCCI), has expressed concerns over South Korea's so-called Yellow Envelope Law.
At a press conference held at the French Embassy in Seodaemun-gu, Seoul, on the 25th regarding a "Study Report on French Economic Influence in Korea," Jalicon said, "We plan to maintain ongoing dialogue with the Korean government for deregulation," citing the Yellow Envelope Law as a key concern.
"We have conveyed to the Korean government that the Yellow Envelope Law could affect foreign companies' activities and operations in Korea, and that it may heighten business instability, at least in the early stages of implementation," Jalicon said. "We have also suggested that ambiguities in legal interpretation need to be addressed."
Chairmen of major foreign chambers of commerce in Korea, including the FKCCI, expressed concerns about the law during a meeting with Trade Minister Kim Jung-kwan in September last year. They have since submitted proposals to task forces operated by the Ministry of Trade, Industry and Energy and the Ministry of Employment and Labor.
"France is a country that values labor rights, but sudden changes to the business environment overnight are inevitably difficult," Jalicon said. "It would be better to implement changes through a transition period."
French executives operating in Korea emphasized that bilateral economic cooperation runs broad and deep. The French Embassy introduced achievements in Korea-France economic partnership that had not been widely known through its study report.
Julien Herveau, vice chairman of the FKCCI, explained, "Based on value-added measures, French exports to Korea often pass through third countries. According to the OECD, the actual value of French exports to Korea is estimated to be more than 50% higher than official statistics."
Seventy percent of French exports to Korea consist of equipment and inputs used in domestic production, indicating that French companies occupy important positions in Korea's strategic value chains.
"Major French aerospace companies such as Thales, Safran, and Airbus supply core technologies to key Korean institutions, while KAI and Korean Air supply aircraft structures back to Airbus—a two-way partnership," Herveau said. "There is strong complementarity between the two countries in aerospace, defense, semiconductors, batteries, and shipbuilding."
Lee Jun, a foreign attorney at Kim & Chang, noted, "Until the mid-2000s, technology flowed from France to Korea, but as Korea's core capabilities grew rapidly, most Korea-France technology cooperation today takes the form of joint development. Collaboration between innovation ecosystems in areas like quantum computing is also active."
Leading French quantum computing companies Pasqal and Quandela have partnered with KAIST, Yonsei University, and the Seoul Metropolitan Government.
Mahlen Marques Lopez, head of Business France Korea at the French Embassy, highlighted cooperation in nuclear energy, renewable energy, and defense industries. "Nine Korean satellites were launched from French Guiana, which requires a high level of trust," she said.
France's Orano has supplied enriched uranium, used as fuel for nuclear power generation, to Korea. French companies EDF Power Solutions and Engie are developing offshore wind and solar projects in Korea. Conversely, Korea's Hanwha acquired RES France in 2021, becoming a major wind power operator in France and across Europe.
LG Energy Solution and French company Veolia announced joint investment plans for battery recycling in the Île-de-France region last year.
"France is deeply integrated into Korea's core industries, yet this is not fully recognized," Lopez said with regret.
French Ambassador to Korea Philippe Bertoux said in his welcoming remarks, "With high-level official visits to Korea planned, this report captures the achievements that France and Korea have built together over 140 years since establishing diplomatic relations. It will serve as a stepping stone for both countries to leap toward new horizons."
French President Emmanuel Macron is expected to visit Korea this year and hold a summit with President Lee Jae-myung.