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South Korea Passes 'Yellow Envelope Act' After Filibuster Is Cut Off

Expanded bargaining rights for subcontracted workers mark a shift in South Korea's labor law.

The National Assembly passes a controversial labor bill broadening workers' rights, known as the "yellow envelope bill," in a vote led by the ruling Democratic Party on Aug. 24, 2025. (Yonhap)
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Overview

  • The National Assembly approved the bill 183-3 after ending a filibuster, with the People Power Party boycotting the vote.
  • The legislation broadens who counts as an employer and widens the scope of labor disputes under the Trade Union and Labor Relations Adjustment Act.
  • Unions representing subcontracted workers can make demands directly of client companies under the amended rules.
  • The law restricts companies from seeking damages or provisional seizures over strike-related disruptions.
  • Major business groups warn of workplace confusion and investment risks, while labor federations, including the KCTU, hailed the passage; President Lee has backed the measure and is expected to sign it.