Kim Tae-hoon, an attorney and honorary president of the Lawyers for Human Rights and Unification of Korea (Hanbyun), said on the 10th that he filed a constitutional petition with the Constitutional Court on behalf of a small and midsize enterprise seeking a ruling of unconstitutionality on the "Yellow Envelope Act (revised Labor Union Act Articles 2 and 3)."

Minister Kim Yeong-hoon of the Ministry of Employment and Labor watches the vote on the partial amendment bill to the Trade Union and Labor Relations Adjustment Act (alternative) during the 2nd plenary session of the 428th National Assembly (extraordinary session) held at the National Assembly in Yeouido, Seoul on the 24th. The union law passed the plenary session with 186 present, 183 in favor, 3 opposed, and 0 abstentions. 2025.8.24 /Courtesy of News1 Yeuseungkwan photographer

The Yellow Envelope Act centers on guaranteeing workers' right to strike and preventing the chilling of union activities. It also includes provisions allowing subcontractor employees to negotiate with the prime corporations. Led by the Democratic Party of Korea, it passed the National Assembly's plenary session and was promulgated on the 9th. The scheduled enforcement date is Mar. 10 next year.

Attorney Kim said, "The Yellow Envelope Act is a law that only follows the slogans of a particular union, infringes the constitutional fundamental rights of corporations, and undermines the liberal democratic economic order of the Republic of Korea."

Kim said, "The Yellow Envelope Act expands the scope of employers based on the vague standard of 'substantive control,' violating the constitutional principle of legality in criminal law and increasing the risk of criminal punishment," adding, "It even makes high-level management decisions such as restructuring the target of strikes, fundamentally infringing on the freedom of economic activity."

He also said, "It blocks the right to claim damages for (unions') illegal acts, retroactively deprives property rights even for damages already incurred, and flatly denies the right to claim property," adding, "Even when the same illegal act is committed, it is a law that grants preferential treatment only to unions, damaging the constitutional grand principle of 'equality before the law.'"

In addition, Kim said, "If the Yellow Envelope Act takes effect, many prime corporations will become entangled in disputes and, to avoid legal risks, will choose business downsizing, relocation overseas, or automation," adding, "The damage will directly lead to a chain of bankruptcies among small and midsize partner firms and a reduction in jobs."

He added, "Before further social turmoil and economic damage occur, we hope the Constitutional Court will promptly make an unconstitutional ruling and make a decision to restore the balance between the rule of law and the market economy."

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