This article was displayed on the ChosunBiz RM Report site at 4:51 p.m. on Mar. 10, 2026.
On the 11th at the HwaWoo Training Center in ASEM Tower, Samseong-dong, Gangnam-gu, Seoul. Thirty minutes before the start of Yoon & Yang LLC's seminar, "Response strategies for the enforcement of the yellow envelope law (Trade Union and Labor Relations Adjustment Act Articles 2 and 3)," more than 150 corporations' practitioners flocked in. A long line formed in front of the registration desk, and the venue's seats quickly filled.
Employees from large corporations such as Samsung C&T, Hyundai Engineering & Construction, and Doosan Enerbility also stood out. Although it was a month before the enforcement of the yellow envelope law, the venue was packed with corporate officials seeking to check their labor-management risk response strategies in advance.
An attorney at a major law firm said, "On this first day of the enforcement of the yellow envelope law, subcontractor unions at several corporations are demanding bargaining, and we are receiving a flood of inquiries about response measures and bargaining procedures."
◇ Ambiguous yellow envelope law... law firms see a regulation boom
With the enforcement of the yellow envelope law, the law firm industry is experiencing what is being called a "regulation boom." Since the law took effect on the 10th, more corporations are turning to law firms for related legal advice. As with the Serious Accidents Punishment Act's enforcement in 2022, which drove a surge in legal advisory and litigation, there is an outlook that the yellow envelope law will likewise expand demand in the law firm market.
The core of the yellow envelope law, which took effect that day, is that by expanding the concept of employer, subcontractor unions can demand bargaining with the prime corporations. In fact, from the very first day of enforcement, subcontractor unions across the country have been demanding bargaining with prime corporations.
The Korean Confederation of Trade Unions is reportedly set to simultaneously send official bargaining requests to prime contractors of its seven affiliated industrial unions. The number of union members involved in this alone reaches about 137,000.
The problem is that the scope of the "employer" that must bargain with the union is not clear. The law defines a prime contractor that exercises "substantial and specific control" over a subcontractor as an employer, but critics note that the specific criteria for judgment remain ambiguous. From the perspective of corporations, it is hard to gauge the extent of employer responsibility, leaving them little choice but to seek law firm advice.
◇ Task forces formed one after another to respond to the yellow envelope law… "hopes" also for Commercial Act revision
Law firms anticipated this demand and set up response organizations early. BAE, KIM & LEE LLC formed a "yellow envelope law response task force (TF)" in July last year and is providing advice to corporations. It offers a wide range of legal services, from pre-checks on whether the prime contractor has substantial control, to establishing bargaining response strategies, participating in bargaining procedures, and handling disputes arising during bargaining.
Attorney Kim Sang-min (37th class), who heads Pacific's labor and employment group, explained, "In fact, recently, advice related to the yellow envelope law has surged to account for 50% of all labor and employment work," adding, "In particular, inquiries have increased about judgments on substantial control and ways to improve risk."
Kim & Chang has also formed a labor policy TF and is providing in-depth advice to corporations. It has put forward as key members Attorney Kim Won-jung (Judicial Research and Training Institute 13th class), a labor expert with 30 years of experience, and Attorney Kang Geom-yun (37th class), formerly of the Ministry of Employment and Labor (MOEL).
Shin & Kim LLC launched a "collective bargaining support center" ahead of the enforcement of the yellow envelope law. The center is led by Attorney Kim Jong-su (37th class), head of Sejong's labor group and an expert in labor law. Deputy head is Senior Licensed Labor Attorney Lee Seung-hwan, an expert in labor-management relations, and Advisor Kim Min-seok, who served as Vice Minister at the Ministry of Employment and Labor (MOEL), also joined the center.
Attorney Kim Jong-su said, "Even today, we are receiving comprehensive inquiries from corporations, ranging from whether they must respond to bargaining demands from subcontractor unions, to how procedures unfold if they refuse, and, if they agree to bargain, what content and scope they must announce."
Gwangjang has established a 50-member "labor compliance team" to respond. Attorney Jin Chang-su (21st class) is the Head of Team, and a large number of former judges and prosecutors have been recruited. Recently, former Minister of Employment and Labor Ahn Kyung-duk was brought on as an advisor.
YulChon launched a "yellow envelope law response center" in Aug. last year and is advising corporations. The center is jointly led by Advisor Jeong Ji-won, who served as MOEL's Director-General for Labor-Management Cooperation Policy and Director-General for Labor Standards Policy, Attorney Lee Myeong-cheol, formerly the Supreme Court's chief researcher for labor cases, and Attorney Lee Gwang-seon (35th class), a labor expert, who are handling related dispute responses and consulting.
HwaWoo has formed what it calls a "new government labor policy TF." Centered on Attorney Park Chan-geun (33rd class), head of HwaWoo's labor group, the team includes a wide range of specialists, from senior officials who oversaw policy at the Ministry of Employment and Labor (MOEL), to corporations' HR executives, senior officials from the Korean Confederation of Trade Unions (KCTU), and judges dedicated to labor cases.
The "regulation boom" is expected to continue for the time being. With the enforcement of the Commercial Act amendment expected to change corporate governance and the scope of board liability, corporations' demand for related legal advice could also increase. Law firms have already formed response teams for the Commercial Act revision and are providing legal services. For example, Barun Law LLC formed a "revised Commercial Act response TF" last year and is providing tailored advisory services by corporation.
A legal community source said, "When unprecedented regulation is first enforced, the uncertainty of interpretation is high until case law is established, so help from law firms is inevitable," adding, "It is the reason a boom is expected in the law firm industry, as in 2022 when the Serious Accidents Punishment Act was enforced."