Yellow Envelope Act Set for Passage on the 24th... Opposition Calls for Removal of Controversial Provisions and One-Year Delay

Song Eonseok: "Serious Concerns from the Business Community"
"Controversial Provisions Must Be Revised and Reconsidered"

As the Democratic Party of Korea has announced its intention to push forward with the so-called Yellow Envelope Act (an amendment to Articles 2 and 3 of the Trade Union Act), a contentious bill, during the August extraordinary session of the National Assembly starting on the 21st, the People Power Party has proposed a "one-year postponement of the revised bill." They argue that even if the revised bill, which removes controversial provisions, is passed, its implementation should be delayed by at least a year. The proposal reflects requests from the business community to maintain the current scope of employers and to exclude business management decisions from the subjects of labor disputes.

On August 20, Song Eonseok, Emergency Response Committee Chairman and Floor Leader of the People Power Party, said on CBS Radio, "Given the serious concerns of the business community regarding the Yellow Envelope Act, we should not push the bill through but rather revise or reconsider it." The core of the Yellow Envelope Act is to expand the definition of "employer," thereby granting subcontracted workers the right to negotiate directly with the principal company. It also includes provisions to limit claims for damages against striking workers.

Song Eonseok, Emergency Response Committee Chairman and Floor Leader of the People Power Party, is speaking at a press briefing on current issues held at the Central Party Office in Yeouido, Seoul on August 20, 2025. Photo by Kim Hyunmin

On August 18, six major economic organizations, including the Korea Employers Federation, issued a joint statement urging lawmakers to reconsider the bill. They accepted the restriction on claims for damages against striking workers but requested a one-year grace period before implementation. They also demanded that, even if the definition of labor disputes is expanded, business management decisions should be excluded and the current legal definition of "employer" should be maintained. Previously, these business groups had also opposed limiting claims for damages against workers, but they have since softened their stance.

Choi Eunseok, Chief Spokesperson for the People Power Party, said in a phone interview, "Since this proposal comes from the business community out of desperation, it is only natural to accept it," adding, "Even now, it is right to reconsider the Yellow Envelope Act and discuss the overall direction again." Another official from the People Power Party stated, "We are not unconditionally opposed to the Yellow Envelope Act," and explained, "Since the discussion began to prevent excessive claims for damages related to industrial action from unduly restricting workers' rights, other controversial provisions should be excluded."

However, the Democratic Party is determined to pass the bill in its original form during this extraordinary session. Since they have announced plans to bring the bill to a plenary vote on the 23rd, it is expected to be passed on the 24th, even if the People Power Party responds with a filibuster (unlimited debate).

This content was produced with the assistance of AI translation services.