Major South Korean business organizations have intensified opposition to a labor union reform measure known as the yellow envelope bill.

Six leading business groups, joined by 15 regional federations and nine industry associations, held a rally outside the National Assembly on Tuesday, urging lawmakers to revise the bill.

They warned that recognizing parent firms as employers of subcontracted workers could force companies to face repeated strikes and bargaining demands, destabilizing key industries such as autos and shipbuilding.

The groups also cautioned that firms may sever ties with domestic subcontractors or relocate overseas, leading to bankruptcies among smaller suppliers and weakening South Korea’s industrial base.

While voicing support for workers’ rights, they appealed for compromise measures, such as maintaining the current scope of what qualifies as an employer.