Seoul, Aug 29 South Korean President Lee Jae Myung on Friday called for cooperation between unions and companies, days after the National Assembly approved a new labor law that bolstered the rights of subcontract workers.
Lee told a Cabinet meeting that the “yellow envelope law” is aimed at “mutual respect and cooperation between labor and management.”
Lee also urged labour groups to exercise the “spirit of co-existence” with companies, Yonhap News Agency reported.
With the government planning to increase next year’s budget to spur economic growth, Lee said there is the need for an active fiscal policy amid trade uncertainties and urged the National Assembly’s cooperation to pass next year’s budget.
The government proposed its 2026 budget of 728 trillion won (USD 525 billion), an 8.1 per cent increase from this year, before submitting it to parliament for approval.
“Now is the time when fiscal policy must play a more active role than ever,” Lee said.
“We cannot make the mistake of leaving the farm idle for lack of seeds to sow. It is common sense to borrow seeds if necessary, sow them and prepare for farming,” he added.
His comments were seen as signalling an expansionary fiscal policy, which includes greater government borrowing.
Lee expressed hope that the budget would help tackle the twin challenges of pursuing industrial innovation and reforming an export-dependent economy vulnerable to external shocks, urging the government to closely communicate with the National Assembly to ensure smooth passage of the bill.
He also asked for bipartisan support to advance foreign policy initiatives to build on momentum from his recent trips to the United States and Japan for summits with US President Donald Trump and Japanese Prime Minister Shigeru Ishiba.
“Based on the warm trust built during this trip, I will work to safeguard our national interests while further expanding cooperation with neighbouring countries,” he said.
Lee added he will soon arrange a meeting with ruling and opposition party leaders to brief them on the trip’s outcomes and discuss ways to cooperate.
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