“Yellow Envelope Act”: More Rights for Foreign Workers? Or a Threat to Korean Jobs?
- lewishooper1
- 8 hours ago
- 3 min read
As South Korea expands protections for migrant workers, critics warn of rising tensions and challenges ahead for local labor markets.
"South Korea has started to take a significant step towards improving labor," Kim Young-hoon, the Minister of Employment and Labor, announced during a press conference for the FCC (Foreign Correspondence Club) in Seoul on October 20, 2025, where he set out the conditions in the form of the "Yellow Envelope Act" for foreign workers in the Republic of Korea. Our writer Lewis Hooper attended the press event, and here are the MUST-KNOW facts that you need to understand.
What is the "Yellow Envelope Act"?
The "Yellow Envelope Act", set to take effect in March 2026, is a proposed legislation that aims to provide stronger legal safeguards for migrant workers, who have long faced gaps in protection, job insecurity, and harsh working environments.
Backed by labor rights advocates, the Yellow Envelope Act is set to tackle long-standing inequalities in Korea’s labor system and push the country toward fairer, more inclusive workplace policies. On August 24, 2025, South Korea’s parliament made a big move by passing this groundbreaking law, rooted in a powerful 2014 movement where everyday people showed solidarity with striking workers.
New protections
The Act strengthens union rights and protects all workers—including migrants—from unfair lawsuits and retaliation. For years, foreign workers in Korea have faced grueling hours, limited protections, and little way to fight back against exploitation. Now, with this amendment to the Trade Union and Labor Relations Adjustment Act (TULRAA), more workers—including migrants—can organize and demand fair treatment. This is especially important as Korea’s shrinking birth rate means the country relies more than ever on foreign workers. In fact, foreign workers now make up over 5% of the workforce, and that number is expected to grow as K-culture’s global popularity continues to soar.
Visa runs
Some graduates turn to informal methods—such as “visa runs” or paying private companies for visa sponsorship—to remain in Korea. While no formal policy has been introduced yet, the Minister acknowledged these challenges and signaled plans for a future training program which has been spoken about in the past, however this initiative will focus on international students with backgrounds in language or the arts, aiming to support their smooth integration into the Korean workforce while recognizing their contribution to Korean culture and society in the very near future.
Additionally, the Act will facilitate youth employment exchanges between South Korea and Japan, making it easier for young people from both countries to work across borders. To support a smooth transition, the government will release detailed manuals for employers and employees, outlining rights, responsibilities, and procedures under the new law.
While the Yellow Envelope Act is expected to empower workers and unions, it may also lead to a rise in strikes and collective action, as employees make fuller use of their strengthened rights. However, the government has emphasized its commitment to transparency and public safety, stating that clear guidelines and safeguards will be in place to balance workers' rights with the protection of citizens and businesses under the new policy.
Final thoughts - The Dojeon Media team
The Dojeon team believes that the guidelines for the act sound promising; however, they will not be implemented right away. And although the guidelines will be published for employees and companies, most of the time when a new act like this is released, it is met with confusion and, as a result, they are not followed through with. We hope that this new act does what it says and finally provides more rights for foreign workers in Korea as Korea opens up more and more each year.
What are your concerns or thoughts on the Yellow Envelope Act? We would love to hear your thoughts in the comments below!
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