4 in 10 foreign firms hold negative views on labor policy of new gov't: survey

This photo shows lawmakers at the National Assembly after voting for the passage of the yellow envelope law at the National Assesmbly in Seoul, Aug. 24. Yonhap

Four out of 10 foreign companies operating in Korea have expressed a negative view of the new government's labor policy, citing risks from reforms such as the widely viewed pro-labor "yellow envelope law," a recent survey showed Thursday.

In the survey conducted by the Korea Foreign Enterprises Association (KOFA) on 100 foreign firms with investments in Korea, 41 percent of respondents gave negative assessments of the government's labor policies, while 26.5 percent offered a positive view.

Of the respondents, 32.5 percent gave a neutral assessment of the government's labor policy.

The yellow envelope law, designed to guarantee the bargaining rights of indirectly employed subcontracted workers, was cited as the most contentious policy, according to KOFA.

The law was passed by the National Assembly in late August.

To prepare for the law's enforcement, 66.3 percent of the surveyed firms said they would review their subcontracting structures, while 44.6 percent said they are preparing labor dispute response manuals.

In contrast, the plan to extend the retirement age drew the highest level of positive response, with 59 percent of companies in support. They cited benefits such as utilizing the experience and expertise of older workers and mitigating labor shortages.