Catherwood LibraryILR School

South Korea is moving closer to enacting the “yellow envelope law,” a set of labor reforms that would give subcontractor unions greater bargaining power by redefining who qualifies as an employer. The law would allow workers to negotiate directly with large corporations and expand the range of permissible labor disputes. Advocates argue it corrects power imbalances and protects workers from excessive legal penalties during strikes. Business leaders fear it could increase labor disruptions and limit managerial decision-making. The law also raises concerns about the burden of proof in damage claims and the potential impact on Korea’s corporate environment.