Key facts
- The Korean Confederation of Trade Unions (KCTU) held a large rally in Seoul demanding direct negotiations with subcontracted workers.
- Around 5,000 to 10,000 union members participated in the demonstration.
- The rally also called for government intervention in the financial crisis of discount store chain Homeplus Co.
- The KCTU stated that many businesses are resisting negotiations with subcontracted workers, despite a recently enacted labor law.
- The 'yellow envelope act,' which requires prime contractors to negotiate directly with subcontractors, went into effect in March.
A major South Korean labor union staged a large-scale rally in downtown Seoul on Wednesday, demanding that businesses engage in direct negotiations with subcontracted workers. The Korean Confederation of Trade Unions (KCTU) estimated approximately 10,000 members participated, while police put the figure at around 5,000. The unionists marched toward the presidential office, also calling for government intervention to resolve the financial crisis at Homeplus Co., a discount store chain owned by private equity firm MBK Partners that entered court-led rehabilitation in March 2025.
During the rally, the KCTU urged businesses to directly negotiate with subcontracted workers, arguing that many companies have resisted such talks despite a recently enacted revision to labor law. The law, known as the 'yellow envelope act,' requires prime contractors to engage in direct negotiations with subcontracted workers and went into effect in March. KCTU head Yang Kyeung-soo stated that unions under the organization had requested negotiations with over 400 primary contractors in the past four months, but actual negotiations have only occurred at four businesses.