Koo Yoonchul: "Guidelines for Yellow Envelope Act Will Be Prepared Swiftly Before Implementation"

Response at the National Assembly's Economic Policy Inquiry on the 17th

Deputy Prime Minister and Minister of Economy and Finance Koo Yoonchul announced on the 17th that the government will prepare specific guidelines and instructions over the next six months before the implementation of the Yellow Envelope Act (the amendment to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act).

Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol is responding to a question from Lee Eonju, a member of the Democratic Party of Korea, during a government-wide economic inquiry held at the National Assembly on September 17, 2025. Photo by Kim Hyunmin

Deputy Prime Minister Koo made this statement in response to a question from Assemblyman Kim Sanghoon of the People Power Party during a government-wide economic inquiry held at the National Assembly that afternoon. Assemblyman Kim asked, "How do you assess the situation where labor disputes and strikes are occurring across all industries in Korea following the passage of the Yellow Envelope Act, which is being called the 'Illegal Strike Encouragement Act'?"

Assemblyman Kim raised the need for supplementary legislation to the Yellow Envelope Act, expressing concern that "in medium-sized shipbuilding companies where the ratio of primary to subcontracted employees is 1 to 5, if the primary contractor must participate in all negotiations with subcontractors, it could lead to a significant deterioration of the business environment."

He continued, "The American Chamber of Commerce in Korea (AMCHAM) has assessed that the Yellow Envelope Act could undermine management stability and investment attractiveness in Korea. The European Chamber of Commerce in Korea has even mentioned the possibility of withdrawal."

In response, Deputy Prime Minister Koo stated, "There is uncertainty regarding issues such as the concept of employer and actual control," and added, "We intend to create guidelines and regulations within a scope that prevents excessive market concerns by collecting Supreme Court precedents, decisions from the Labor Relations Commission, and expert opinions." He also said, "There is a six-month grace period before the law takes effect. During this period, we will develop the guidelines as quickly as possible and explain them to business leaders."

Regarding concerns that "the highest separate tax rate of 35% on dividend income and legislation mandating the retirement of treasury shares could dampen corporate investment," he countered, "Our dividend payout ratio is 30%, which is lower than China's 40%. It is natural for companies to earn profits and pay dividends."

Assemblyman Kim stated, "The Lee Jaemyung administration must succeed because the people of Korea must prosper," but also argued, "If we move toward biased policies that prioritize the ideology of a particular group and the interests of labor unions above all else, there will be no future for the people of Korea and their children."

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