The ruling Democratic Party has reaffirmed its plan to pass a labor union reform measure known as the “yellow envelope bill” during the August parliamentary session, despite protests from the American Chamber of Commerce in Korea, or AMCHAM.

AMCHAM Chairman James Kim met ruling party floor leader Kim Byung-kee on Tuesday, warning that the bill could harm South Korea’s appeal to multinational investors and undermine its role as a regional hub.

The AMCHAM leader urged lawmakers to allow more time for industry input, stressing the importance of a stable and predictable regulatory environment.

In his public remarks, the floor leader did not mention the bill directly, but he emphasized that the government and his party are firmly committed to improving unreasonable regulations.

Huh Young, the party’s deputy floor leader for policy, later told reporters the legislation cannot be revised and will be passed according to procedure.

The bill seeks to expand protections for workers by limiting companies’ ability to file large-scale damage suits against unions and their leaders as well as bolster corporate responsibility over subcontractors, and earlier versions were twice vetoed by former President Yoon Suk Yeol.