‘Yellow Envelope’ bill passes despite business backlash - 24 August 2025

The National Assembly on Sunday passed a contentious labor bill championed by the ruling Democratic Party of Korea, despite fierce objections from the opposition and warnings from the business community.

The amendment to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act, widely known as the “Yellow Envelope” bill, was approved in a 183-3 vote during a morning plenary session. The legislation is designed to expand labor protections for all categories of workers while limiting companies’ ability to seek compensation for losses caused by strikes.

The bill is set to take effect in March 2026.

A total of 186 lawmakers participated in the vote, with the 107-member People Power Party boycotting the vote.

Democratic Party Chair Jung Chung-rae lauded the passage of the bill, calling it a “monumental moment in history,” during an intra-party meeting of lawmakers that took place after the plenary vote.

Assembly Speaker Woo Won-shik echoed Jung’s sentiment, highlighting that the bill was first introduced back in April 2015 and expressing hope that the legislation will contribute to creating a safer and healthier working environment.

The Korean Confederation of Trade Unions, one of the country’s two main umbrella unions, welcomed the approval of the labor bill, calling it “a fruit of history achieved by the noble sacrifices” of labor activists.

Six major business lobbies, including the Korea Enterprises Federation and the Korea Chamber of Commerce and Industry, condemned the move.