jasdooit

Before the enforcement of the **yellow envelope law**, the number of non-regular employees, such as those who are dispatched or outsourced, at South Korea’s top 500 companies based on revenue has significantly dropped by 8.2% within two years. This reduction is due to a mix of reasons, including the effects of the law, an economic downturn, and shifts in employment practices.

A study conducted by the corporate research institute Leaders Index, which examined 432 companies ranked in the top 500 by revenue and that reported their employment types on the Ministry of Employment and Labor’s Work-Net platform, revealed that the number of non-regular workers decreased from 724,331 in 2023 to 664,845 in 2025—the year the law was implemented—a reduction of 8.2%. During the same time frame, the overall workforce grew by 2.8%, rising from 1,636,571 to 1,682,397. Businesses have modified their staffing structures to decrease dependence on contracted labor.

Leaders Index stated, “The 2023–2025 period represented the complete legislative process of the **yellow envelop law**,” and mentioned, “From the viewpoint of companies, the legal obligations for non-regular employees grew, while the number of such workers started to decrease during the time when institutional changes were being discussed.”

Nevertheless, sector-specific studies indicate that elements other than legal risks, including economic recessions and a move toward permanent jobs, also contributed. The most significant decreases were observed in construction and building materials (-23.4%), petrochemicals (-34.8%), secondary batteries (-33.5%), and steel (-11.6%).

During construction, the number of non-regular workers declined from 212,239 in 2023 to 162,538 in 2025—a reduction of 23.4%—while regular employees also decreased by 3.7%. A comparable pattern was observed in the petrochemical sector, where the number of regular workers dropped by 5.6%.

In the secondary battery industry, the number of regular employees rose by 8.8%, whereas non-regular workers decreased, resulting in a notable difference. At the same time, POSCO recently announced at a board meeting that it plans to convert roughly half of its 14,755 non-regular workers into direct hires, making it the sole company among the top 500 to officially declare a significant shift towards direct employment.

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