Yellow Envelope Act at a Glance: Key Changes and an Investor Checklist
As of August 25, 2025 , South Korea’s so-called “Yellow Envelope Act” (amendments to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act) has cleared the National Assembly in late August. The bill expands prime-contractor (lead firm) responsibility and broadens the scope of lawful industrial action, while placing limits on damage claims against unions and members. Once promulgated, the law will take effect six months later (expected: early 2026), so both companies and investors should begin pre-implementation checks. 🎯 Key Takeaways ✅ Wider definition of “employer” : Lead firms with material control could be obligated to bargain ✅ Wider scope of disputes : Beyond pay and working conditions to major management decisions ✅ Damages limits : Caps/mitigation standards to curb excessive claims against unions/members ...