New Korean Government Guidance Clarifies Collective Bargaining Obligations for Profit Sharing, Business Decisions, and AI
2026.09.11.
On September 3, 2026, Korea's Ministry of Employment and Labor (“MOEL”) issued guidance on when union demands concerning performance bonuses and business decisions may require collective bargaining and justify industrial action under the Trade Union and Labor Relations Adjustment Act (“TULRAA”). The guidance interprets amendments to TULRAA that took effect on March 10, 2026, known as the “Yellow Envelope Act.” For background on the Yellow Envelope Act, please see our prior newsletters, Korea’s New Pro-Union Yellow Envelope Act Passes and Korean Labor Law: Expected Changes in 2026.
The central message is that employers generally retain control over strategic business decisions. However, if the likely impact on employees is sufficiently concrete, bargaining may be required over implementation, employment consequences, and protective measures.
For more details, please refer to the full report attached below.
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