1.

Minimum Hourly Wage for 2026: KRW 10,320 (The Minimum Wage Act, Effective as of January 1, 2026)
 

2.

Amendment to Trade Union and Labor Relations Adjustment Act (“TULRAA”), Commonly Known as “Yellow Envelope Act” (Effective as of March 10, 2026)

The Yellow Envelope Act became effective on March 10, 2026. The key aspects of the Amendment (this “Amendment”) are as follows:
 

A.

Expansion of Scope of “Employer”

This Amendment recognizes an entity as an employer under the TULRAA if it has substantial and specific control over working conditions, even if it is not the direct employer under an employment contract.

Accordingly, if a contracting entity substantially and specifically controls or determines the working conditions of a subcontractor’s employees, it may be deemed an employer and be obligated to engage in collective bargaining with the subcontractor’s union.
 

B.

Expansion of Scope of “Union Membership”

Currently, the TULRAA stipulates that an organization is not considered a trade union if it allows non-employees to join. This Amendment deletes this provision, thereby ensuring the right to organize for various types of workers, including special employment workers and platform workers, and aligning with recommendations from international organizations such as the International Labour Organization (the “ILO”).
 

C.

Expansion of Scope of “Industrial Dispute”

Currently, the TULRAA defines an industrial dispute as “a state of dispute arising from a disagreement over claims concerning the determination of working conditions, such as wages, working hours, welfare, dismissal and other treatment.” This definition limits industrial disputes to disagreements arising during the process of determining working conditions applicable to all union members.

However, the Amendment redefines an industrial dispute as “a state of dispute arising from a disagreement over claims concerning the determination of working conditions, such as wages, working hours, welfare, dismissal, the status of employees, other treatment and business management decisions that affect working conditions, as well as from the employer’s clear violation of a collective bargaining agreement regarding matters set forth in Article 92, Subparagraph 2, Items (a) through (d).” Thus, this change expands the scope of legitimate industrial action.
 

D.

Limitation of Damage Claims Against Unions

While the current TULRAA grants immunity to unions or workers from liability for damages resulting from legitimate collective bargaining and industrial actions, this Amendment broadens this protection to cover damages arising from “other activities of the trade union” as well.

It also clarifies that a union or worker is not liable for damages caused to an employer when acting in defense against the employer’s illegal acts. It prohibits employers from exercising their right to claim damages for the purpose of interfering with union activities. Moreover, this Amendment outlines specific factors that courts must consider when determining the extent of individual liability for illegal acts committed by the union and/or workers and provides a framework for such union and/or workers to request a reduction in damages.
 

3.

Amendment to Enforcement Decree of TULRAA (Effective as of March 10, 2026)

Along with the amended TULRAA, the government has also finalized its Enforcement Decree.

Pursuant to Article 14-3, Paragraph 3 of the Enforcement Decree, if a principal company fails to post a bargaining request from a subcontractor’s union and the subcontractor’s union files a request for correction with the Labor Relations Commission (the “LRC”), the LRC now has up to 20 days (previously ten days) to determine if the principal company qualifies as the “employer” for bargaining purposes.

Additionally, pursuant to Article 14-11, Paragraph 3 of the Enforcement Decree, when deciding whether to separate or combine bargaining units between the principal and subcontractor unions, the authorities will now prioritize “similarity of interests,” “adequacy of representation” and the “potential for conflict among unions” over traditional factors such as working conditions.
 

4.

Publishment of MOEL Guidelines and Manual for Principal-Subcontractor Collective Bargaining

On February 24, 2026, the Ministry of Employment and Labor (the “MOEL”) released its official interpretative guidelines (the “MOEL Guidelines”). Additionally, on February 27, 2026, a new manual for bargaining procedures between a principal company and subcontractor’s union (the “Manual”) was published.
 

A.

Key Points of MOEL Guidelines

The “employer status” of a principal company is now determined by “structural control.” This focuses on whether the principal company limits the subcontractor’s decision-making regarding working conditions rather than direct command over individual workers.

While core business decisions (e.g., mergers, spin-offs, etc.) themselves are not subject to bargaining, processes that are carried out during the implementation process, such as layoffs or reassignments, are now expressly specified as subjects of bargaining.
 

B.

Key Points of Manual

The MOEL has clarified its position that the principal and subcontractor unions are independent bargaining units by default and that no separate legal procedure is required to treat “the entire group of subcontracted workers” as a separate bargaining unit from the principals’ own employees.

When a principal company receives a bargaining request, it must provide public notice to all relevant subcontractors and their workers for which the principal company’s “employer status for bargaining” can be recognized. The Manual recommends that public notices be posted not only in areas where the subcontractor’s workers are stationed but also on the subcontractor’s physical bulletin boards and internal IT systems through proactive cooperation with the subcontractor.