Jung Min-ho has worked as a staff writer at The Korea Times since 2012, mostly covering social and political issues. He currently belongs to the Politics & City Desk where he covers topics such as health, labor and human rights. Prior to joining the team, he was responsible for covering North Korea and sports. His article about a biosecurity breach of Middle East respiratory syndrome won him an award from the Korea Science Journalists Association in 2016. He is also the co-author of the book, "Medical Pioneers of Korea" (2019). He served as the head of the international relations committee at the Journalists Association of Korea from 2021 to 2023.
Gov’t plans mock councils to ease rollout of ‘yellow envelope law’
Labor Minister Kim Young-hoon speaks during a press conference at Government Complex Sejong, Monday. Yonhap
By Jung Min-ho
Labor minister vows to address concerns about possible spike in strikes, foreign business exodus
Korea plans to roll out a simulated version of labor management councils with the country’s largest unions in an effort to smooth the transition and head off potential problems with the pro-labor “yellow envelope law” set to take effect in six months.
The new legislation marks a significant shift in Korea’s labor landscape, potentially upending decades of corporate practices. While businesses fear increased disputes and liabilities, labor advocates contend that the change will empower millions of subcontracted workers, giving them a voice at the bargaining table.
The law, which amends Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act, widens the definition of “employer” to include parent corporations and outside contractors that exercise direct control over the working conditions of subcontracted workers.
The revision is expected to allow those workers to bargain directly with corporate management and prohibits companies from demanding heavy compensation for losses stemming from strikes.
Speaking to reporters in Sejong on Monday, Labor Minister Kim Young-hoon said the goal of operating the councils is to address uncertainties and observe potential challenges before the law fully comes into force in February.
“The government will calmly lay out the path over the next six months. During this time, we will have candid discussions with organizations including the Korea Enterprises Federation, AMCHAM (American Chamber of Commerce) and EuroCham (European Chamber of Commerce) and create a support task force. The team will actively communicate the diverse opinions to develop clear guidelines and to minimize uncertainty,” he said.
“We will also assess principal-subcontractor relationships at major firms by region and industry and prepare standard bargaining models, simulations and additional measures to promote win-win solutions.”
In anticipation of the new legal framework, the ministry will form consultative bodies at major workplaces, designed to bring together parent companies and subcontracted employees for bargaining sessions permitted by the revisions.
Critics fear the law could curb youth hiring by making companies hesitant to expand their workforce, but Kim argued it might also help by narrowing the gap between employees of major firms and those working for subcontractors.
“If subcontracted workers are able to negotiate directly with the principal company and the gap (in treatment between principal and subcontracted workers) is reduced as a result, then there may be little reason for young people to search for jobs only at major companies,” he said.
“No single law can resolve Korea’s labor market divide (between permanent workers and contracted employees) instantly … Its success depends on step-by-step, transparent cooperation between workers, employers and policymakers.”
The ministry, meanwhile, is moving to streamline how occupational disease claims are processed, with the goal of reducing drastically the delays workers face in securing approval.
Currently, the process for recognizing and compensating occupational diseases ― conditions caused by workplace hazards such as toxic exposures ― takes an average of 227.7 days, with some cases stretching as long as four years. The urgency of these reforms is highlighted by the fact that 149 workers died while still awaiting state recognition between 2020 and 2024.
Under the government’s new plan, the average processing period will be cut nearly in half to just 120 days by 2027.
He also announced his intention to discontinue the foreign nanny program, initiated in 2024 by the Seoul Metropolitan Government, which had sought to expand it to 1,200 workers this year from 100.
“I don’t think it can succeed,” Kim said. “It will be ended.”
Asked whether the ministry would permit full freedom of job mobility for foreign workers here ― a key demand from advocacy groups ― he emphasized the need for a careful approach.
“Since granting complete freedom of movement for migrant workers could have unintended side effects, such as more labor concentration in the capital area, we are carefully reviewing the matter,” he added.