[Law Firms Now] Hwawoo Concludes Yellow Envelope Act Seminar on Impact Analysis and Response Strategies for Construction Companies

Jointly Hosted by Hwawoo and the Korea Construction Management Association
Presenting Risk Management Solutions for the Construction Industry
"A Proactive Compliance System Must Be Established"

Hwawoo Law Firm (Managing Partner Lee Myoungsoo) successfully concluded a seminar organized to present risk management solutions for the construction industry ahead of the enforcement of the so-called Yellow Envelope Act (the amended Trade Union Act).

According to the legal community on the 12th, the "Seminar on Analysis of the Impact on Construction Companies and Response Strategies," jointly hosted the previous day by Hwawoo and the Korea Construction Management Association (Chairman Chung Wonjoo), ended successfully with the participation of around 150 officials from the construction industry.

On the 11th, construction industry representatives attending the seminar “Analysis of the Impact on Construction Companies and Response Strategies in Preparation for the Implementation of the Yellow Envelope Act,” jointly hosted by Hwau Law Firm and the Korea Construction Management Association, are listening attentively to the presentation. Hwau Law Firm

The seminar was organized to conduct a detailed diagnosis of the legal and business risks that the construction sector will face under the enforcement of the Yellow Envelope Act, and to propose practical response measures. In particular, it provided in-depth analysis of the ripple effects that key issues under the amended Trade Union Act will have on the unique prime contractor-subcontractor structure and site operations in the construction industry, including: the expansion of the scope of "employer," changes in the scope of liability for industrial action, and limitations on claims for damages.

The seminar was attended by about 150 practitioners in charge of legal affairs, HR, and site management from major domestic construction, plant, and energy infrastructure companies such as Samsung C&T, Hyundai Engineering & Construction, and Doosan Enerbility, reflecting the high level of tension in the industry over the enforcement of the amended law.

In the first session, Hong Jungmo, a lawyer at Hwawoo who took the podium as presenter, highlighted the key elements of the amended Trade Union Act and the new labor-management relations framework and legal risks that the construction industry will face after the law comes into force.

Hong focused in particular on the impact that the "expansion of the concept of employer" will have on construction sites that operate under multi-layered cooperation structures. He said, "As the likelihood increases that employer status will be recognized even for prime contractors that do not have an explicit employment contract relationship in a prime contractor-subcontractor structure, a comprehensive review of existing site operation practices is required," adding, "Rather than relying on ex post responses after disputes arise, the key is to establish a proactive compliance system by managing risks from the contract-structure design stage and refining internal guidelines."

On the 11th, at a seminar on impact analysis and response strategies for construction companies in preparation for the enforcement of the Yellow Envelope Act, co-hosted by Hwawoo Law Firm and the Korea Construction Management Association, Hwawoo lawyer Hong Jeongmo is presenting. Hwawoo Law Firm

In the second session, Choi Youngwoo, former professor at the Korea Labor Education Institute and now an expert member at the labor law firm Sejong Partners, gave a presentation on specific types of disputes expected to occur at construction sites after the amended law takes effect and on practical response processes.

Professor Choi explained, using case-based examples, the limits and points of caution regarding legal measures that companies can take when industrial action occurs, and emphasized the importance of the initial response capabilities of site managers.

He noted, "After the law is amended, even a seemingly minor response at the site can lead directly to large-scale disputes or legal liability," and added, "Close-knit training for site managers, along with the establishment of a rapid internal reporting and communication system, is more important than anything else."

Lee Kwanguk, head of Hwawoo's New Business Group, who planned this seminar, said, "The enforcement of the Yellow Envelope Act will be a major turning point that fundamentally changes the landscape of labor and legal risks across the construction industry," and added, "We hope this seminar will serve as a milestone that helps construction companies minimize confusion at sites and effectively prepare for legal uncertainty."

To proactively respond to changes in labor policy and legislation, Hwawoo has been operating a "Yellow Envelope Act Research Group" since September last year and has continued its specialized efforts, including submitting policy proposals to the Ministry of Employment and Labor. Hwawoo plans to continue supporting the stable business activities of client companies by providing tailored advisory services and training that take into account the specific characteristics of construction sites.