National Assembly Plenary Session Scheduled for the Afternoon of the 4th
Ministry of Employment and Labor Continues to Express Support for Passage
Business Circles Cite Over-Legislation, Consider Constitutional Complaint
The so-called "Yellow Envelope Act," referring to the amendments to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act, is set to be addressed at the National Assembly plenary session on August 4. As the vote approaches, a final round of public opinion battles is intensifying between the government and business circles. The Ministry of Employment and Labor, which is in charge of the bill, has taken the unusual step of repeatedly making official statements about the positive effects of the Yellow Envelope Act, emphasizing the necessity of its enactment. In contrast, business groups have signaled a strong response, even warning of potential constitutional complaints and other legal actions should the bill pass.
According to government ministries, the Ministry of Employment and Labor plans to immediately begin work on increasing the specificity of the implementation ordinances and guidelines for the amendments if the Yellow Envelope Act passes the National Assembly as scheduled. This is a preparatory measure to minimize disputes and friction that may arise during the interpretation and actual application of the law between companies and labor unions.
The core of the Yellow Envelope Act consists of two main points. First, it expands the definition of "employer" to guarantee practical bargaining rights for indirectly employed workers, such as subcontracted employees. Second, it restricts companies from claiming damages for losses incurred due to legitimate union activities. The government argues that the amendments are "essential for a mutually beneficial structure," while business circles believe there is a high possibility that this constitutes "over-legislation," which would not only impose excessive burdens on companies but also discourage investment activities.
It is noteworthy that, under the new administration, the Ministry of Employment and Labor has taken a particularly proactive stance on the passage of the amendments. On July 29, Minister of Employment and Labor Kim Younghoon expressed de facto support for the bill at the Government Complex Seoul, stating, "The amendments to Articles 2 and 3 of the Trade Union Act are intended to promote dialogue between labor and management at the industrial site and to reduce disputes." Two days later, he distributed a 3,500-character Q&A document addressing major issues regarding the amendments, systematically rebutting the arguments put forward by business groups.
Minister Younghoon Kim, Yellow Envelope Act Briefing(Seoul=Yonhap News) Junghoon Lee reporter = Younghoon Kim, Minister of Employment and Labor, attended a briefing on July 29 at the Government Seoul Office in Jongno-gu, Seoul, regarding the amendment to the Labor Union and Labor Relations Adjustment Act (Yellow Envelope Act). 2025.7.29
Photo by Junghoon Lee
uwg806@yna.co.kr (End)
The Ministry of Employment and Labor devoted considerable attention to the controversial issue of expanding the scope of "employer." The ministry stated, "Only those who can substantially and specifically control or determine working conditions will be recognized as employers." The government has thus drawn a clear line, stating that there will not be a situation where companies must negotiate unconditionally with countless subcontractors. The ministry also refuted the business community's claim that "managerial decisions" would now be included as subjects of labor disputes, clarifying that "simple investments or factory expansions do not become subjects of disputes; only cases such as layoffs, which inevitably involve changes to working conditions, are included."
Business circles are taking the situation seriously because the Yellow Envelope Act is a key labor pledge of President Lee Jaemyung under the new administration. This is also why Sohn Kyungshik, Chairman of the Korea Employers Federation (KEF), held his first solo press conference in seven years after taking office last month, publicly calling on politicians to "stop the amendment of the Trade Union Act." Business groups have expressed concern that the business environment is shifting into a tilted playing field favoring labor under the new administration. A business representative stated, "We have presented alternatives to the government regarding the Yellow Envelope Act, but they have been virtually useless," adding, "It seems the answer has already been decided, and all focus is on passing the bill."
In fact, business circles are known to have proposed to the government that the cap on damages be set separately in the enforcement ordinance and that workers' wages not be subject to seizure. However, these proposals were not accepted in the National Assembly, and only the demands of labor unions were reflected. Business groups remain skeptical of the government's claim that expanding the definition of employer will not result in a situation where companies must negotiate unconditionally with subcontractors. They argue that if the scope of employer is expanded, there would be no way to refuse bargaining when dozens or even hundreds of subcontractor unions demand negotiations.
Business circles are considering filing a constitutional complaint if the bill passes. They argue that the legal provisions regarding the definition of employer and the scope of industrial action are abstract, and that the lack of detailed enforcement ordinances could lead to ongoing interpretive disputes. In response, a government official stated, "We will focus on swiftly preparing practical guidelines during the process of establishing enforcement ordinances and guidelines to minimize confusion."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
