Greater than 7 out of 10 home corporations projected that labor relations subsequent 12 months can be extra unstable than this 12 months, in keeping with a latest survey performed by the Korea Enterprises Federation (KEF). The survey consequence means that conflicts will intensify as labor disputes are anticipated to extend because of the implementation of the “Yellow Envelope Act” (amendments to Articles 2 and three of the Commerce Union and Labor Relations Adjustment Act) and union calls for are diversifying to incorporate necessary retirement age extension and dealing hour discount.
Based on the KEF’s 2026 Labor Relations Outlook Survey concentrating on 151 home corporations, 72.9% of the responding corporations anticipated that labor relations subsequent 12 months will deteriorate in comparison with this 12 months. The share of responses indicating that labor relations will worsen was the very best since 2020. 30.5% responded that relations will change into “way more unstable,” whereas 42.4% stated they may change into “considerably extra unstable.”
Essentially the most cited causes for projecting unstable labor relations had been “elevated conflicts and labor struggles as a result of Yellow Envelope Act implementation” (83.6%) and “diversification of union calls for together with necessary retirement age extension and dealing hour discount” (52.7%). “Elevated laws favorable to labor” (34.5%) and “intensification of judicial disputes associated to labor relations” (10.9%) additionally adopted.
Notably, many opinions expressed concern about unwanted effects from the Yellow Envelope Act implementation in March subsequent 12 months. Amongst responding corporations, 64.2% apprehensive that industrial websites will change into unstable as struggles concentrating on prime contractors enhance following Yellow Envelope Act implementation. 58.3% of corporations anticipated that negotiations and disputes can be extended as a result of expanded negotiation targets. Corporations involved about elevated direct employment calls for as a result of unlawful dispatch controversies and elevated unlawful actions as a result of restricted legal responsibility for damages had been surveyed at 39.7% and 23.8%, respectively.
The labor payments anticipated to put the best burden on company administration had been “working hour discount (4.5-day work week implementation)” and “authorized necessary retirement age extension” at 73.5% and 70.2%, respectively. This represents overwhelmingly higher concern in comparison with the next “enlargement of employee scope together with employee presumption” (16.6%) and “necessary multi-enterprise bargaining” (11.9%).
Excluding wages and welfare advantages, the primary points in subsequent 12 months’s collective bargaining had been “necessary retirement age extension” (49.7%) and “efficiency bonus will increase and recognition as wage parts” (33.8%). These had been adopted by “workforce enlargement” (26.5%), “working hour discount” (23.2%), “enlargement of odd wage scope” (21.2%), “employment stability” (17.9%), and “enlargement of union actions” (9.3%).
Jang Jeong-woo, director of the Korea Employers Federation’s Labor-Administration Cooperation Division, acknowledged, “The share projecting unstable labor relations appeared highest within the 2020s, reflecting company issues about Yellow Envelope Act implementation and discussions on institutional modifications concerning necessary retirement age and dealing hours.” He added, “Since varied points are anticipated for subsequent 12 months’s labor relations, dialogue and cooperation for relationship stability are vital.”
