The head of the American Chamber of Commerce in Korea(AMCHAM) has proposed forming a task force with the ruling and opposition parties amid concerns about the recent passage of the so-called Yellow Envelope Act and its impacts on businesses.

Speaking on Thursday during a meeting with the leaders of the main opposition People Power Party at the AMCHAM office in Seoul, Chairman James Kim said the revisions to labor-related regulations could limit South Korea’s labor flexibility and reduce the country’s competitiveness as a business hub in the Asia-Pacific region.

He said it’s very important to clarify some “gray areas” of the bill and create a more globally competitive and business-friendly environment through detailed adjustments.

The recent amendments to the Trade Union and Labor Relations Adjustment Act include employer liability, the scope of labor disputes, and union rights.

AMCHAM has proposed a goal of increasing the number of Asia-Pacific headquarters in South Korea to one-thousand and suggested forming a task force in which the rival political parties and AMCHAM work together to create meaningful regulatory reform and a predictable business environment.