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South Korea Passes 'Yellow Envelope' Labor Law Expanding Bargaining Rights

Officials promise clear guidance before enforcement to address business concerns.

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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Representatives from South Korea's major industrial bodies rally in front of the National Assembly in Seoul on Aug. 19, 2025, to call for the parliament to reflect local companies' voices in a government-backed labor reform bill. Known as the "yellow envelope bill," the bill seeks to broaden labor protections across all employment types and restrict companies from claiming damages against legitimate labor union activities. (Yonhap)

Overview

  • Parliament approved amendments to Articles 2 and 3 of the labor law in a 183-3 vote after the People Power Party ended a filibuster and boycotted the final roll call.
  • The law broadens who counts as an employer, extends bargaining rights to subcontracted and indirectly employed workers, and curbs companies’ ability to seek damages over strike-related disruptions.
  • The government says the revisions will take effect six months after promulgation, with a task force to gather input and issue implementation guidelines during the grace period.
  • Major business lobbies expressed regret and urged supplementary legislation, calling for clearer liability standards and additional employer protections to preserve competitiveness.
  • Investor groups raised predictability concerns, and media reports said GM Korea signaled the changes could prompt a reassessment of its local operations as the scope of strikeable issues now includes management decisions affecting working conditions.