« Yellow Envelope Act »: amendment of articles 2 and 3 of the Trade Union Act

Environment and Labor Committee adopts an alternative bill (21st National Assembly)[3]

Passed by the National Assembly (173 for, 0 against, 1 abstention)[3]

Bill No. 2123038; the President sends it back for reconsideration on 1 December 2023.

First veto: the government asks the Assembly to vote again[8][3]

The Cabinet resolves to request reconsideration under article 53(2) of the Constitution. The Ministry of Employment and Labor cites a vague definition of the employer, strikes over matters handled by courts and labour commissions, and an exception to joint liability for damages granted to unions alone.

Rejected at the re-vote after the presidential veto[3][7]

The bill is rejected at the new vote and therefore lapses.

Public hearing in the Environment and Labor Committee[7]

The Korea Enterprises Federation on one side, the KCTU and the FKTU on the other, set out opposite positions, summarised in the committee’s 2025 review report.

New alternative bill adopted in committee (22nd National Assembly)[4]

Passed again by the National Assembly (177 for, 2 against)[4]

Bill No. 2202444; the President’s request for reconsideration reaches the Assembly on 19 August 2024.

Cabinet examines a second request for reconsideration[9]

The opening remarks of the meeting argue that the new text goes further than the one rejected in 2023, by also protecting « persons who are not workers » and widening the limits on damages.

Rejected again at the re-vote after the second veto[4][7]

Environment and Labor Committee adopts a third alternative bill[6][5]

Seven member bills merged; the Legislation and Judiciary Committee amends the wording on 1 August 2025.

Passed by the National Assembly (183 for, 3 against), then promulgated on 9 September 2025[5][11][2]

186 members present out of 298. The Act enters into force six months after promulgation.

Promulgation as Law No. 21045[11][2]

Transmitted to the government after the vote of 24 August, the Act is approved by the Cabinet on 2 September and promulgated on 9 September 2025, with entry into force set for 10 March 2026.

Consultation on the enforcement decree, then a revised draft[12]

A first draft is open for comments from 25 November 2025 to 5 January 2026; a revised draft, from 21 January to 6 February 2026, separates the general rules on bargaining units from those applying to subcontracted workers.

Enforcement decree adopted and interpretive guidelines finalised[13]

The Cabinet adopts the decree; the ministry finalises its interpretive guidelines after public comment from 26 December 2025 to 15 January 2026 and sets up an advisory committee to rule on employer status.

Entry into force of the amended articles 2 and 3[1][2][14]

The new limits on damages apply to losses arising from 10 March 2026; an employer’s waiver of liability also covers earlier losses.

Government assessment after 100 days[15]

By 19 June 2026, 1,161 subcontractors’ unions had asked 439 principal workplaces to bargain; labour commissions had recognised 103 principals as employers and 10 workplaces had opened formal talks.

Guideline on profit-sharing bonuses and business decisions[16]

The ministry states that demands for a bonus set as a share of revenue or profit are not a mandatory bargaining subject nor a lawful ground for industrial action, though they may be negotiated voluntarily.

First principal–subcontractor collective agreement under the amended law[17]

Hyundai Steel and the unions of four of its subsidiaries sign an agreement on occupational safety and health, the subject on which a labour commission had recognised Hyundai Steel as an employer.