South Korea

Joongang Ilbo | English | News | Aug. 29, 2025 | Regulation

A third of foreign companies operating in Korea are considering scaling back or withdrawing their Korean operations following the passage of the "Yellow Envelope Bill," a pro-labor law revising Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act. The law, passed by the National Assembly under the Democratic Party's initiative, expands the scope of employers and limits damages claims against unions.

A survey conducted by the Korea Foreign Enterprises Association (KOFA) found that 35.6 percent of respondents were contemplating reducing investment or shutting down operations, while 64.4 percent indicated no change to their plans. The survey showed considerable opposition to amendments limiting damages claims and civil liability for illegal strikes, with 47 to 50 percent expressing disagreement on these provisions.

Business groups such as the American Chamber of Commerce (Amcham) and the European Chamber of Commerce in Korea (ECCK) expressed concerns about the law’s potential to undermine Korea’s attractiveness as a regional hub. They highlighted legal uncertainties and the increased risk of criminal penalties related to labor disputes, which could prompt foreign companies to exit the Korean market.

IEA 사무총장 "韓, 에너지 공급망 다변화 기여할 최적 위치"

ZD Net Korea | Local Language | News | Aug. 29, 2025 | Supply Chain Issues

Fatih Birol, Secretary-General of the International Energy Agency (IEA), highlighted South Korea’s strategic position to help diversify global energy supply chains, which are currently heavily concentrated in certain countries, particularly China. Concerns exist over China’s dominance in refining 70 percent of the 20 strategic minerals essential to the energy industry, which poses risks to global supply chains amid potential trade conflicts or natural disasters.

Birol emphasized the increasing importance of energy security, now extending beyond oil and natural resources to key minerals and supply chains. He also voiced concern over declining governmental and international focus on climate change despite the rising frequency and intensity of extreme weather events.

Regarding South Korea, Birol praised its strengths in clean energy technologies, batteries, artificial intelligence (AI), and other industrial technologies that position the country to both capitalize economically and contribute to reducing supply chain dependencies. Korea’s leading role in the global battery supply chain and the administration’s efforts to expand renewable energy and power grid infrastructure, such as energy highways, were positively noted.

While Birol’s current tone indicated a shift from last year’s nuclear power emphasis, he acknowledged the continued growth of nuclear energy and Korea’s capabilities in nuclear power exports, construction, and operation. Vice Minister Lee Hyun-ho reinforced Korea’s strong global reputation for nuclear construction capabilities and technological safety, with significant international interest in the competitiveness of Korea’s nuclear industry.

Joongang Ilbo | English | News | Aug. 29, 2025 | Regulation

South Korea is set to legalize tattooing by nonmedical professionals after 33 years of prohibition. The National Assembly’s Health and Welfare Committee passed the Tattooist Act, establishing a licensing system for tattoo artists who must pass a national exam to practice legally. If the bill advances through the Legislation and Judiciary Committee and the full Assembly, nonmedical tattooing will become regulated under the law.

The Tattooist Act restricts tattoo artists to licensed establishments, prohibits them from performing tattoo removal, and requires annual training on hygiene and safety. Tattoo parlors must register with local governments and artists must inform clients about potential side effects, report any adverse events, and maintain liability insurance. The law will be implemented two years after it is promulgated.

The move follows a 1992 Supreme Court ruling classifying tattooing as a medical procedure, effectively banning nonmedical tattooing under the Medical Service Act. However, growing demand for tattoos and concerns over unregulated practices have prompted calls for updated regulations. The Korean Medical Association opposes the bill, citing risks to public health by allowing nonmedical professionals to perform a procedure involving skin penetration.