Naver (NAVER) has fallen under the scope of the Yellow Envelope Act. As labor-management disputes over whether the headquarters exercises control over subsidiary employees have dragged on, mediation by the Ministry of Employment and Labor has become necessary. However, it was confirmed that the Ministry of Employment and Labor Seongnam Branch quickly formulated a support plan for Naver's labor-management negotiations but took no special measures for more than two weeks. This is because no precedents or detailed regulations have been established.
According to the Ministry of Employment and Labor Gyeonggi Regional Employment Office Seongnam Branch on the 3rd, the branch's labor-management relations support task force held a meeting on the 14th of last month with key officials including Ji (Commissioner) and the section chief, regarding the National Chemical, Textile, and Food Workers' Union Naver Local Branch (Naver Union)'s demand for integrated negotiations. This came just two days after the Naver Union held a related seminar at the National Assembly.
During the meeting, the task force shared the management side's position and reviewed key issues related to the Yellow Envelope Act. Procedures for responding to accidental incidents such as labor disputes were also discussed. The task force established future plans including: (1) listening to major labor-management issues and providing guidance on dispute prevention; (2) actively encouraging both sides to resolve current issues through dialogue and compromise; (3) monitoring media trends related to local labor issues; and (4) establishing an emergency contact system for accidental incidents.
The Seongnam Branch has taken supporting Naver's labor-management negotiations as a key task. However, the union reacted with surprise. The union side stated, "We have not received any relevant communication from the Seongnam Branch since the seminar." It is also reported that the management side has only engaged in routine business-level discussions, such as sharing negotiation progress with the Seongnam Branch.
Naver's labor and management sides are currently at an impasse, prompting calls for mediation. The union insists that the headquarters should engage in integrated negotiations, while the management repeatedly argues that the headquarters and subsidiaries are separate legal entities without control over each other. Integrated negotiations refer to a negotiation method where working conditions commonly applied across multiple subsidiaries are discussed by the headquarters, subsidiaries, and labor unions at a single table.
At the center of the dispute is the Yellow Envelope Act. The act stipulates that even if an entity is not a party to the labor contract, it shall be regarded as an employer within the scope where it can substantially and concretely control or determine specific working conditions of workers. In such cases, unions may directly demand negotiations with the main contractor or parent company. This is why both sides are contesting whether control exists.
The Seongnam Branch is also in a difficult situation. Although the Yellow Envelope Act has been in effect since March, there is a lack of relevant precedents and detailed regulations, making active mediation difficult. A Seongnam Branch official said, "We have not yet taken any special measures regarding Naver's labor-management dispute," adding, "At this point, we can only offer basic support such as advising them to 'communicate frequently.'"
As on-site confusion continued, the Cheong Wa Dae announced on the 28th through a press release its plan to establish implementation guidelines defining the scope of labor disputes. While enforcement decrees require procedures such as legislative notice and regulatory review taking over three months, implementation guidelines can be applied immediately on the ground. The Cheong Wa Dae stated, "We will monitor changes on the ground after applying the guidelines and consider other measures if necessary."
The Naver labor-management dispute surfaced due to wage gap issues between subsidiaries. While the headquarters and major subsidiaries agreed to a 5.3% wage increase plan, Naver Jet proposed a wage freeze plan. Naver Jet union members conducted a vote on whether to support labor action, securing the right to strike with an 88.6% turnout and 98% approval rate. The union began formally demanding integrated negotiations from the National Assembly seminar held on the 12th of last month.
In the meantime, the rift in the dispute deepened. On the 20th of last month, the union declared a "2026 Integrated Negotiation Kickoff" and sent an official letter to the management side demanding integrated negotiations, but Naver repeated its previous response that no control exists. The Naver Jet Union announced it will begin its first-ever partial strike from 1 p.m. to 5 p.m. on the 9th for four hours.
in TECH
