ECONOMY BOX / BUSINESS

[Economic Term of the Day] The Yellow Envelope Act, 2025.06.16

BOXLOGODEVTranslated from Korean 한국어 원문 보기

This English version is a translation of the original Korean post. Text, screenshots and product details reflect the date it was written.

📰 On June 16, the Yellow Envelope Act went back to the National Assembly!

The Yellow Envelope Act? What was that again?

Put simply,

it is "a bill that stops companies from filing huge damage claims against workers even when they go on strike."

🟡 Start with where the name comes from!

During the 2014 Ssangyong Motor strike, many workers were sued by the company for billions of won in damages.
The name comes from citizens who helped those workers by putting donations in yellow envelopes.
Since then it has become a symbolic bill for protecting labor rights.

🔎 The situation as of June 16

➔ The Democratic Party introduces the bill again!

  • It has been scrapped twice by a presidential veto,
  • but the Democratic Party has decided to reintroduce the bill once more.

➔ Why introduce it again?

This time the bill reportedly also extends protection to platform workers and subcontracted workers.

Democratic Party lawmaker Park Hong-bae said:

"The Yellow Envelope Act is a task of our times, and subcontracted and platform workers must also be protected by the law."


⚖️ The arguments for and against, simply put!

For (labor, opposition party)Against (business, government)
Striking is a legitimate rightCompanies must protect their right to manage
Damage suits are a threatConcern that it encourages illegal strikes
Protects subcontracted and platform workersCould discourage foreign investment

📊 If the bill passes?

  • ▶ Damage claims by companies during strikes → almost impossible
  • ▶ Primary contractors also bear responsibility → protection extends to subcontracted and platform workers
  • ▶ Companies have fewer means of defense → concern about more labor–management conflict

🔮 What happens next?

  • The Democratic Party plans a full legislative push in this regular session of the National Assembly.
  • But the presidential office still opposes it, so another veto is being discussed as a possibility.

✅ In one line!

The Yellow Envelope Act is at the center of a heated debate between "guaranteeing workers' right to strike" and "limiting companies' right to defend themselves"!

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