AMCHAM urges clearer guidance on yellow envelope law to help Korea attract regional HQs

By Shon Duk-ho, ChosunBiz - James Kim, chairman of the American Chamber of Commerce in Korea (AMCHAM), said of the yellow envelope law, a new labor law aimed at strengthening the bargaining rights of subcontract workers (revised Trade Union and Labor Relations Adjustment Act) set to take effect, "We respect the intent of the law itself, but corporations need clearer guidance on what changes will actually occur."

Kim said at a seminar on the yellow envelope law, a new labor law aimed at strengthening the bargaining rights of subcontract workers, co-hosted by BAE, KIM & LEE LLC and AMCHAM on the 8th, "For Korea to leap forward as a regional headquarters hub in the Asia-Pacific (APEC), it needs labor policies that meet global standards and a predictable corporate environment."

Kim explained that global corporations have about 5,000 Asia-Pacific regional headquarters in Singapore, around 1,400 in Hong Kong, and about 900 in Shanghai, but fewer than 100 in Korea. He added, "AMCHAM will work closely with the government to help create a policy environment where worker protection and corporate competitiveness are in balance."

Lee Joon-gi, managing partner at BAE, KIM & LEE LLC, said, "The yellow envelope law, a new labor law aimed at strengthening the bargaining rights of subcontract workers, is a major labor-law change that affects all corporations, making accurate understanding and preparation essential." Lee Hyo-jin, a foreign attorney (New York State) at the firm, said, "Because the yellow envelope law, a new labor law aimed at strengthening the bargaining rights of subcontract workers, could have a broad impact on foreign-affiliated companies in Korea as well, it is important to thoroughly understand its contents and the potential effects on the company and be ready before it takes effect."

Attorney Cho Heung-seon of BAE, KIM & LEE LLC said, "Looking at the major lower-court rulings so far, we can anticipate how the yellow envelope law, a new labor law aimed at strengthening the bargaining rights of subcontract workers, set to take effect, may affect corporations across different industries."

About 150 legal representatives and officials from major domestic and overseas corporations and institutions, including AMCHAM member companies, attended the seminar.

Source:https://biz.chosun.com/en/en-society/2025/12/09/VTSH7JQI5ZGERILZDBUBCXAMEY/