Nearly three-quarters of Korean companies expect labor relations to deteriorate next year as the controversial Yellow Envelope Law takes effect in March, according to a survey by the Korea Employers Federation.
Key Issue Briefing
Labor Tensions Rising: The survey of 151 companies found that 72.9% anticipate worsening labor-management relations compared to this year. The implementation of the Yellow Envelope Law and diversifying union demands—including retirement age extension and working hour reductions—are driving concerns that labor disputes could reach their highest level since the 2020s.
Workplace Safety Initiative: KB Financial Group has partnered with the Ministry of SMEs and Startups and the Korea SMEs and Startups Agency to support serious accident prevention at small and medium-sized enterprises. A performance-based social contribution model will be introduced, concentrating support on programs that demonstrate the highest accident prevention effectiveness.
Regional Jeonse Crisis: The jeonse (lump-sum deposit lease) shortage is intensifying even in non-regulated areas including Busan, Daegu and Sejong. Jeonse listings in Sejong plunged 60.5% year-on-year, with prices rising 4.66% over the past three months—the highest increase nationwide.
News for Early-Career Professionals
1. Companies Anxious as 72.9% Expect Worse Labor Relations Next Year
The Korea Employers Federation survey revealed that 83.6% of respondents cited increased conflicts from the Yellow Envelope Law implementation as the primary concern, while 52.7% pointed to diversifying union demands including retirement age extension and shorter working hours. Working hour reduction (73.5%) and statutory retirement age extension (70.2%) were identified as the labor laws that would most burden corporate management.
2. KB Financial to Support SME Serious Accident Prevention
KB Financial Group (105560.KS) signed an agreement with the Ministry of SMEs and Startups and the Korea SMEs and Startups Agency to prevent serious industrial accidents at SMEs. The initiative will identify companies with excellent industrial safety technologies and products, providing product supply, on-site inspections, consulting and training free of charge. "We will serve as a catalyst in creating an environment where SMEs can grow with confidence in a safe workplace," KB Financial Group Chairman Yang Jong-hee said.
3. Jeonse Shortage Hits Non-Regulated Regions—Sejong Listings Down 60% in One Year
According to real estate platform Asil, jeonse listings in Sejong dropped 60.5% from a year ago, while Busan and Daegu declined 45.1% and 44.1% respectively. Sejong recorded the nation's highest jeonse price increase at 4.66% over the past three months. Reduced housing supply and preference for quality single properties are analyzed as the main causes of regional jeonse market instability.
Reference News for Early-Career Professionals
4. AI and Yellow Envelope Law Regulations: 'Eye of the Storm' That Signals Boom for Legal Market
A survey of managing partners at Korea's six major law firms identified AI and regulatory tightening as key keywords for the legal market next year. AI regulations and technology competition are rapidly creating new legal risks as they affect corporate decision-making and overall governance structures.
5. "Compensate SKT Hacking Victims 100,000 Won Each"
The Consumer Dispute Mediation Committee ruled that SK Telecom (017670.KS) should provide victims of its personal data breach with 50,000 won in telecom fee discounts and 50,000 T Plus points. The decision referenced past large-scale data breach cases where per-person compensation typically amounted to 100,000 won. If SKT accepts the ruling, approximately 23 million affected users could receive identical compensation, with total costs estimated at 2.3 trillion won ($1.7 billion).
6. Netmarble on Track for Record Revenue This Year, Accelerating Global Expansion
According to FnGuide, Netmarble (251270.KS) is projected to post consolidated revenue of 2.79 trillion won ($2.1 billion) this year, setting an all-time record. Operating profit is forecast to surge more than 50% year-on-year to 347.1 billion won. Successive hits from proprietary IP titles including "RF Online Next," "Seven Knights Reverse" and "Vampyr" drove the earnings turnaround. With eight new titles planned for next year, analysts suggest annual revenue could potentially exceed 3 trillion won.
