The Australian Chamber of Commerce in Korea is pleased to share Yulchon LLC’s latest insights on Korea’s newly passed Yellow Envelope Act, a landmark piece of legislation that represents a significant pro-labour shift in Korea’s industrial relations landscape.

The Act, set to take effect in March 2026, expands the scope of who qualifies as an employer, allows non-employee union members, broadens the justifications for industrial action, and imposes new limits on damages claims against unions. While unions have welcomed the reforms, business groups have expressed concerns over increased legal uncertainty and potential operational challenges.

Yulchon’s analysis provides practical guidance for employers, including risk assessments, contractor management strategies, and proactive engagement with employee relations. Members can access the full update and expert contacts through Yulchon’s Yellow Envelope Act Center.

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