SK, GS warn investors of pro-labor law's impact on petrochemical sector

Major conglomerates operating petrochemical plants have urged investors to brace for possible negative effects from the revised pro-labor act, widely known as the “yellow envelope law,” which will take effect next year. The warnings come as the struggling petrochemical industry pushes to reduce the nationwide output from naphtha cracking centers (NCCs) by up to 25 percent, or 3.7 million tons. Last month, the government asked petrochemical firms to submit self-rescue plans by the end of the year, before seeking regulatory relief and financial support. SK Inc., the holding company of SK Group, Korea’s second-largest conglomerate, mentioned the amendment of the Trade Union and Labor Relations Adjustment Act in its prospectus released Thursday, explaining its planned restructuring at SK Geo Centric, its second-tier subsidiary producing chemical materials. “Approved by the National Assembly on Aug. 24, the yellow envelope law may influence the petrochemical industry’s efforts to reorganize and streamline, as this law justifies worker protests against business decisions that affectWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times