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.
EXPLAINER What’s in Korea's ‘yellow envelope law'?
Labor Minister Kim Young-hoon speaks during a press conference at Government Complex Seoul, Tuesday. Newsis
By Jung Min-ho
Liberal ruling party aims to approve pro-labor bill on Monday
Despite warnings from business groups and economists, a controversial pro-labor bill — dubbed the “yellow envelope law” — is poised for passage. Leaders of the liberal ruling Democratic Party of Korea have signaled their determination to approve the legislation, unilaterally if necessary, during the National Assembly’s plenary session scheduled for Monday.
The bill refers to proposed amendments to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act. If enacted, it would broaden labor protections and strengthen the rights of workers to take collective action.
The "yellow envelope" nickname traces back to a 2014 grassroots campaign in which the public sent donations in yellow envelopes to support laid-off SsangYong Motor workers who faced court orders to compensate their employer for financial losses stemming from strikes. Since then, the yellow envelope has become a symbol of solidarity with workers confronting costly damages lawsuits.
A central feature of the bill is the expanded definition of what constitutes a legitimate labor dispute.
Currently, labor disputes are legally limited to disagreements about “working conditions.” The proposed revision will broaden this to include “business management decisions that affect working conditions.” This means unions could legally strike not only over layoffs but also over management choices like investment plans or moving factories overseas.
The Korea Enterprises Federation (KEF), one of the leading organizations advocating for the interests of Korean companies, has expressed concern over the change, arguing it would be tantamount to obligating companies to obtain union approval before making any major business decisions.
Another major change is the expanded definition of “employer.” Under the bill, any entity that “substantially and specifically controls and determines working conditions” would be considered an employer — not just those who employ workers directly.
This would, for example, allow employees of subcontractors to negotiate directly with larger parent companies like Hyundai Motor. Critics argue it would significantly increase the risk of doing business in Korea.
“The proposed amendment vastly and indiscriminately expands the definition of ‘employer.’ This risks collapsing the industrial ecosystem between main contractors and subcontractors, and will seriously undermine our industrial competitiveness,” KEF Vice Chairman Lee Dong-keun said in a joint statement released Wednesday with other pro-business groups. “By disregarding the fundamental nature of subcontracting agreements under civil law, the amendment seeks to make companies that are not parties to these employment contracts the target of industrial disputes.”
If passed, critics warn the law could undermine the competitiveness of industries reliant on complex supply chains and subcontracting — such as carmaking, electronics and shipbuilding — sectors that are vital to Korea’s economy.
The ability of employers to seek compensation for losses resulting from labor actions will also be curtailed. The bill contains a provision stating that “a union or worker who, in order to protect the interests of the union or workers, is unavoidably compelled to cause damage to the employer in response to the employer’s illegal act shall not be liable for compensation for such damage.”
The bill also effectively bars employers from pursuing compensation for damage as a form of retaliation. When individual liability is at issue, courts are required to assess each person’s circumstances carefully to assign fair and proportionate responsibility, rather than imposing broad liability. This provision is intended to shield union members from legal risks during strikes.
The ruling party, which holds a majority of Assembly seats, plans to pass the bill on Monday, after which it would take effect in six months. Labor Minister Kim Young-hoon told journalists on Tuesday he will ensure that the revision serves as a cornerstone of the ministry’s policy to achieve “genuine and sustainable” economic growth.