KEF Warns 2 Labor Laws Could Curb Investment and Jobs at 1st ESG Meeting

1 articles · Updated · asiae.co.kr · May 13

Kyungsik Sohn said unclear legal risks in the Yellow Envelope Act and Serious Accidents Punishment Act would dampen investment and employment, even if the laws aim to protect workers and improve safety.
At KEF's first 2026 ESG Management Committee meeting, executives from 19 major business groups argued the Trade Union Act's employer definition and bargaining scope could unsettle labor relations and confuse worksites.
Four years after the Serious Accidents Punishment Act took effect, the committee said its application scope and liability standards remain ambiguous, making compliance difficult and reinforcing calls to shift safety policy toward prevention.
Vice Labor Minister Changjun Kwon, attending the committee for the first time since its 2021 launch, said the government would expand on-site support for smaller firms and use the revised Trade Union Act to promote dialogue over confrontation.

Can South Korea's shift from punishment to prevention truly fix its deadly workplace safety crisis?

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