English disclosure requirement for listed firms to expand, yellow envelope law to take effect in 2026
An electronic trading board at Hana Bank headquarters in central Seoul shows the benchmark KOSPI closing at 4,214.17 points on Tuesday, the last trading day of 2025. Yonhap
A greater number of Korean companies will be required to provide regulatory filings in English starting next year, offering enhanced transparency and wider market access to foreign investors, while the recently legislated "yellow envelope" pro-labor law will take effect, expanding labor-related liabilities of companies, officials noted Wednesday.
According to the Financial Services Commission, the scope of firms subject to mandatory English regulatory disclosures will be widened from companies listed on the Korea Composite Stock Price Index (KOSPI) with assets of 10 trillion won ($6.94 billion) or more to those with assets of a minimum of 2 trillion won.
The new disclosure requirement will take effect May 1.
The move is aimed at improving transparency and accessibility for overseas investors amid efforts to enhance the competitiveness of the local capital market, according to officials.
Another major change is the enactment of the yellow envelope law, scheduled to take effect in March.
The revision to the Labor Union Act is primarily designed to guarantee the bargaining rights of indirectly employed workers of subcontractors. It also prohibits companies from filing lawsuits for damages or provisional seizures against unionized workers, which many argue businesses have used to suppress strikes.
The labor reform measure is expected to increase compliance burdens for large conglomerates and foreign firms that rely heavily on subcontracting structures.
The country's minimum wage will increase 2.9 percent to 10,320 won per hour in 2026, lifting minimum monthly labor costs to 2.15 million won.
The government will also expand tax incentives for reshoring Korean firms and extend eligibility to companies that complete the downsizing of overseas operations within four years after newly establishing or expanding domestic facilities.
Foreign companies operating liaison offices in Korea will face stricter compliance requirements as well, as a newly introduced rule allows authorities to impose fines of up to 10 million won on foreign corporations that fail to submit necessary liaison office status reports or submit false information.