Constitutional Court Dismisses Constitutional Complaint Against Yellow Envelope Act Filed by Lawyers Representing SMEs

Yonhap News Agency

Kim Taehoon, Honorary President of the conservative lawyers' group "Lawyers for Human Rights and Unification of the Korean Peninsula," filed a constitutional complaint against the so-called "Yellow Envelope Act" (the amendment to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act), but the Constitutional Court dismissed the case.

According to the legal community on October 23, the Constitutional Court dismissed Kim's complaint the previous day. Last month, Kim, representing several small and medium-sized enterprises, requested the court to rule the Yellow Envelope Act unconstitutional. Kim stated, "The court ruled the complaint inadmissible on the grounds that the claimant companies do not have labor unions, so there is no direct relevance." However, he argued, "In reality, even small and medium-sized enterprises that supply to large companies with unions could face production disruptions and severed business ties, threatening their very survival."

Previously, on September 10, Kim filed the constitutional complaint, claiming, "The Yellow Envelope Act expands the definition of 'employer' based on the vague standard of 'substantial control,' violating the constitutional principle of legality and increasing the risk of criminal liability, thereby infringing on the freedom of economic activity, as well as the freedom of contract and business."

Meanwhile, the Yellow Envelope Act, promulgated on September 9, broadens the definition of "employer" to strengthen the responsibility of principal contractors for subcontracted workers and limits the scope of damages claims against unions or workers. The law is scheduled to take effect on March 10 next year.

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